If you own your home, you have invested a large amount of time and money into maintaining it. A fire or an accident involving someone visiting your home can lead to costly expenses that put your financial future in jeopardy. This is why having sufficient homeowners insurance coverage is so important. The first goal of a quality homeowners insurance policy is to provide you with adequate financial security so as to protect you from devastating losses.
What Are the Common Exclusions for Homeowners Insurance?
Your homeowners’ insurance doesn’t cover everything. There are a few important exclusions that you need to be aware of. For instance, it won’t cover the cost of bringing your home up to code if additional construction or repairs are needed. It also won’t cover earthquake or hurricane damage, as these are covered under separate policies. There are also specific types of water damage that are not covered, such as floods, leaky foundations, and sewer back-ups.
What Is the Most Important Part of Homeowners Insurance?
The most important part of any homeowners insurance policy is the level of coverage you choose. An HO-2 policy will cover up to 16 perils that are named within the policy. An HO-3 policy covers all types of perils, except for those directly named within the policy. There are many different types of homeowners policies available, including ones for mobile homes and condos. Knowing what type of home you have and the level of coverage you are looking for will ensure that you find the policy that is best for you.
Who Needs Homeowners Insurance?
Every homeowner should have a quality home insurance policy. However, those who compulsorily need it are the ones who have a mortgage on their property. If the homeowner doesn’t purchase a policy that will cover the balance of the mortgage, the lender will purchase it and add it to the cost of the loan. This way, the policy’s amount will be charged as part of each month’s mortgage payment. Even if you have paid off your home, having the right type of homeowners insurance in place is extremely important. Most people don’t have enough savings or investments to rebuild their homes or replace all of their belongings in the event of an unfortunate disaster.
What Are the Three Basic Levels of Coverage?
There are three basic levels or types of coverage included in a homeowners policy. Personal property includes your possessions. This can include your appliances, furniture, valuables, and any other items you keep in your home. The next type of coverage is a liability. This covers you if anyone is injured while on your property. Liability covers their medical expenses as well as the cost of any damage to their property. Coverage for your dwellings can also take two forms, cash value or replacement. It’s important to remember that replacing your home is much more costly in most cases, and may exceed the cash value of your current home.
As a homeowner, you always want to be prepared for any type of emergency. Take a few moments to consider how much time, effort, and money you have invested in your home. Then consider what it would cost you to replace everything you own. With the right type of homeowners policy, you wouldn’t have to worry about it at all, and you can have the peace of mind you want knowing that you are fully covered. At Humble & Davenport Insurance, our agents have the knowledge and experience to help you find the perfect policy to meet your needs. To get started, contact us today!