With most types of insurance, people often wonder if it’s really a necessary part of their lives. For many people, they feel as if they pay premiums and have nothing to show for it. That is, until an accident happens and all of a sudden assistance is needed to replace not only a home, but also the possessions inside. Homeowners insurance, which is a necessity in today’s world, offers a variety of coverage that can provide not only peace of mind, but also assistance in the event tragedy strikes.
Property Protection
For most people, a standard homeowners insurance policy is comprised of two parts, which are property protection and liability protection. Property protection is usually made up of several parts including dwelling, personal property, other structures and loss of use. Dwelling coverage covers not only the home itself, but also all attached structures and fixtures such as built-in appliances, electrical wiring, plumbing and heating systems and more. Other Structures coverage applies to such things as garages and storage buildings, in addition to fences, patios, retaining walls and driveways. Loss of Use coverage, sometimes overlooked by those purchasing insurance, provides for normal living expenses in the event a home cannot be lived in until repairs are made. Finally, personal property protection applies to items normally found in a home, such as firearms, electronics, jewelry, artwork and other valuable possessions that may be lost in the event of a disaster.
Liability Coverage
Just as important as property protection is liability protection, which can offer coverage in the event another person files a lawsuit against a homeowner if they are injured while at the residence. This is referred to as personal liability coverage, and covers all family members living in the home. Medical payments coverage provides payment for medical expenses incurred by a person injured while on a homeowner’s property, but does not usually apply to any injuries that may have occurred through an at-home business.
Exceptions to the Rule
As with virtually any type of insurance coverage, there are exceptions that are not covered by a home insurance policy. For example, injuries to animals are generally not covered. Along with this, any damage to motor vehicles or aircraft do not fall under homeowners insurance coverage. For people living in areas where natural disasters are common, they should realize that damage sustained from earthquakes, floods, mudslides or other events is not covered. To make sure a homeowner has the necessary coverage needed for their situation, it’s often best to check with an individual insurance carrier to get a complete picture of the coverage offered.
Guarding Against Inflation
For many homeowners who take out insurance policies, they rarely stop to think about how much home ownership costs have increased over the years. Because of this, many often find themselves with less money than is needed when trying to rebuild a home or replace valuable personal property. To make sure this does not happen, many insurance companies recommend inflation guard protection to give an added level of peace of mind. This will make sure a family is not under insured when it comes time to rebuild, allowing them to maintain their current way of life.
Water Damage Coverage
While most home insurance policies do not offer coverage against flood damage, many do offer coverage against such types of water damage as sewer backup. Now given as the most common type of claim filed by policyholders, this coverage is not considered part of a standard policy and can come with limitations, so most experts recommend discussing this coverage with an agent prior to finalizing any deal for homeowners insurance.
In today’s world, families can never be safe enough. As a result, having adequate home insurance coverage is a must to ensure everyone can remain safe and sound when and if problems arise. By taking the time to analyze one’s needs, home insurance can be a true life saver.