Homeowners Insurance

Owning a home is an expensive investment and even if you take excellent care of your property, a disaster can happen at any moment that leaves you in financial ruin. Having home insurance is essential for covering the costs of any damages that happen to your home and personal belongings. Even if you don’t own your home you can benefit from having homeowners insurance. In fact, many landlords require tenants to carry a certain amount of coverage.

Do you have enough home insurance coverage? If an unexpected tragedy were to happen would your family and finances be safe? Do you want to know more about how a house insurance policy can protect your assets? What follows is some important information about the different types of insurance for homeowners and how it can provide an umbrella of protection that keeps you safe from multiple perils and the financial loss they cause.

What is homeowners insurance?

Homeowners insurance is an insurance that provides coverage and compensation from damages to your home and personal property, which include events such as:

Fire

Hail

Lightning

Hurricane

Vandalism

Theft

However, flood and earthquake insurance are usually not included in a homeowner’s policy and must be purchased separately. In addition, homeowners insurance also protects you from liability claims due to any accident that happens on your property.

What types of home insurance coverages are available?

The following are some of the most common types of coverage you receive with a homeowner’s policy:

Dwelling Coverage

Provides compensation to rebuild or repair your home if it is damaged by a covered peril. This insurance pays for any aspect of home repairs including plumbing, heating and cooling systems and electrical, so it is essential to have the right level of coverage as compared against your current home value.

Other Structures

This coverage provides compensation for structures that surround your house such as your garage, fence and guest house if they must be repaired or rebuilt because of damage or loss in a covered hazard.

Personal Property

Coverage that compensates you, usually for the full replacement cost, in the event that your personal items such as your clothing, electronics and furniture are damaged or destroyed by a covered cause.

Loss of Use

Provides protection and funds for additional living expenses if you are forced to evacuate your home while it is being repaired. The compensation amount is limited to the costs in excess of what you would typically spend to run your household.

Liability Insurance

Protects you, your family and your finances from paying compensation for any legal claim brought by others who are injured or sustain some other form of damage on your property. This coverage also pays for any legal costs associated with your defense in court.

Medical Payment

Provides compensation that pays the medical costs for an individual who sustains injury on your property or in the area surrounding it, such as a sidewalk. This type of coverage applies if the injured party needs medical attention but does not plan to bring legal action against you. The compensation payable is usually limited to a set amount.

It is important to discuss these and other aspects of your homeowner policy with your insurance specialist to ensure that you get the maximum benefits possible. If your base policy does not provide the level of coverage you need, explore adding supplemental coverages.

Supplemental Coverage Options

For any perils not covered by your basic homeowner’s policy, there are several supplemental insurance options available, which include, but are not limited to:

Guaranteed Replacement Cost

Provides enough compensation to rebuild your home completely, whether or not the cost of replacement exceeds the limits set out in your original insurance policy.

Extended Replacement Cost

Provides a specific percentage of compensation over and above the original policy limits to cover the cost of rebuilding or repairing your home.

Valuable Items

Valuable items coverage can be further separated into Valuable Items Plus and Personal Articles Floater coverages. Valuable Items Plus provides expanded coverage and compensation limits for high-value items that you possess such as your computers, jewelry, silverware, antiques and fine art. The Personal Articles Floater itemizes specific personal belongings and the covered perils attached to each item in the policy.

How much does homeowners insurance cost?

Without knowing the specific factors involved, it is impossible to know how much your home insurance policy will cost. However, the optimal level of coverage you need is generally determined by a few important factors:

Financial Assets

The amount that you are able to pay out-of-pocket if your home is damaged helps to determine the cost of your monthly premium. The higher deductible you can pay, the lower your insurance costs will be, and vice versa. If you have a large cushion of financial assets, having high liability coverage is advised because you stand to lose a lot if a lawsuit is brought against you.

Lein Holder Requirements

If your home is financed, your lender may stipulate that you carry home insurance that covers at least the amount of your mortgage balance in the event that there is an unavoidable disaster that severely damages or destroys your home.

Special Coverage Requirements

Depending on where your home is located and if it is prone to specific perils, your insurer may require the inclusion of special types of coverage, such as flood or earthquake insurance, along with your base policy.

Ihry is a leader for homeowners owners insurance

If a major disaster were to happen today, would your property and possessions be protected? Having adequate homeowner’s coverage provides the security you need to safeguard what is likely your most important investment, your home.

As you shop for your homeowners policy it is important to work with a reputable and experienced insurance provider. This ensures that you get the coverage you need to secure your belongings in the event of an unexpected catastrophe, and keeps you and your family from suffering through unimaginable financial loss.

Do you need help finding the right homeowner insurance coverage for your needs? Call Ihry Insurance today and speak with one of our home insurance agents to get a free quote.

Homeowners Insurance

What is homeowners insurance?

Fire