Whether you’re out to buy a new house or still paying your monthly mortgage, you may have wondered about the home insurances people have talked about. We’re sure that since you’re here reading this article, you want to know the deal.
Luckily, you’re in the right place because, in this article, we will be talking about how insurance works and the reasons you need it for your home right now.
What is Home Insurance?
Also called homeowners insurance, it is a form of property insurance that provides coverage for the destruction of property and other damages done to houses due to unforeseen events such as floods, snow, etc. It also provides liability coverage for manmade situations like accidents inside the house, burglary, etc.
Usually, home insurance covers four types of incidents on your property which are exterior damage, damage or loss of belongings, interior damage and personal assets, and injury inside your property. When one or multiple of these instances happen, you can claim your provider to fix the current situation and pay a deductible out-of-pocket costs for the insured client.
For example, let’s say that your house had water damage due to a storm. You called the help of a claims adjuster, and they told you that the water damage would total up to $10,000.
You inform your insurer of this and make an amount for your deductible, which, let’s say, is $4,000 according to the contract you have with them. This means that the excess cost will be $6,000, which will be paid for by your insurer. The higher you pay for your deductible, the lesser your monthly payments.
For the most part, most home insurances have a limit on their liability cost, which determines how much coverage they will have should an unfortunate event happen in your house. The standard limit is usually $100,000, but you can negotiate with your insurer on this account.
Not only that, but there are a lot of home insurances out there, so finding one would not be too hard. You can even shop home Insurance quotes directly from their site, so all you have to do is to find one that is most suitable for you.
Now that you know how home insurances usually work, let’s list out why you should have one for your home right now.
Coverage for Damages Both In and Out
It doesn’t matter if your house is more than 30 years old or brand new. If you have home insurance for your house, any damages, big and small, that you can’t pay in full can be made to claim that will be sent to your insurer.
Damages to your property are often very expensive, and if you want to fix it but don’t want to pay too much money, then home insurance can cover more than half of the bill for the fix.
It Also Covers Personal Belongings
The reason why it’s called home insurance rather than house insurance is that it doesn’t only cover the structure itself, but your home as a whole, which means the personal belongings you have inside will be covered as well. For example, damages to your furniture, clothes, gadgets, appliances, and others are listed in your coverage.
Some home insurance policies even provide coverage for your belongings inside your vehicle. But don’t confuse it with auto insurance since home insurance only covers the property inside the vehicle but not the vehicle itself.
Coverage for Personal Liability
Accidents happen all the time, and they can occur in the place we least expect, especially in our homes. This includes injuries not just to your family members but also to your guests.
With home insurance, you can pay for them with a small deductible according to the calculations made, and the home insurance will take care of the rest. Injuries can be very expensive, especially when it involves multiple people. However, don’t mistake this for health or life insurance, as home insurance will only cover injuries in your home.
Loss of Use Coverage
When disaster strikes, the possibility of your home being unlivable due to the extensive damages it has after the disaster is huge. Of course, it can still be livable after the repairs, but if you can’t live there while it’s under repair, where would you get the money for temporary accommodations and food?
Luckily, in this situation, home insurance can come in clutch. With the loss of insurance coverage, when your house is deemed unlivable and is in dire need of repair, this coverage will cover your temporary accommodations for a hotel and expenses for food.
Some policies even include rental cars when you need them for work. But, if you still want to have the luxury of not paying too much for your monthly, you can still decide on a deductible with your insurer.
Home insurance is handy if you want to be financially safe when something unfortunate happens to your house. This is especially true if you’re living where natural disasters often strike. So with home insurance, not only are you protecting your home and our family as well.