Know Your Own Coverage

Know Your Own Coverage – Homeowners or home insurance, also called hazard insurance, is an insurance policy for your property that covers your home. The insurance policy combines different protections, including losses in one’s home, property, personal possessions, and accidents on the property. At least one of the policy holders must live in the insured home, but anyone with an interest in the property, like the mortgage holder, should be listed on the insurance policy. Homeowners insurance is usually in effect for a fixed period of time, and the policy is paid monthly to the insurers in a payment called a premium.
The cost of homeowners insurance is based on the cost of the home and any items in the home that are insured. The policy itself lists what will and what won’t be paid to the insured, depending on the type of damage or loss. Usually, damage due to termites, floods, or earthquakes is excluded from the policy. This means that homeowners insurance will not pay for flood damage, termite damage, or damage to the foundations of the house. Special insurance, like flood or earthquake insurance, can be purchased to cover these things. When buying homeowners insurance, it is very important to read your policy thoroughly to understand what is types of damage are covered. Your insurance agent can explain any confusing language and help you understand what you are paying for. If you live in an area prone to floods or other natural disasters that not usually covered by insurance, ask your insurance provider about purchasing extra insurance to cover these things.
There are many types of homeowners insurance. The basic policy provides coverage against several different types of damage, including damage due to fire and smoke, lightning, windstorms, explosions, theft, or other criminal activities like vandalism. Exceptions include floods and earthquakes. Other forms of home policies include everything on the basic policy list as well as other perils that are specifically named in the policy. Certain types of home insurance will include all types of coverage in a package, so be sure to ask your insurance agent. A special form of home insurance is available for people who rent, which is usually called renter’s or tenant’s insurance. Renter’s insurance covers personal property against the same forms of damages in the basic homeowners policy. There is also a special form of insurance for the owners of condominiums.
Home insurance also has different classes of coverage for different types of property. Dwelling coverage covers the house itself but not damages to the land. Another class covers other structures on the property like garages. Personal property is covered under its own class, but you need to make sure any valuable items are listed on the policy. There is also a class of insurance that covers expenses associated with living expenses such as loss of rent. If you are renting your home to a tenant and your house suffers fire damage, this class of home insurance covers the loss of rent incurred when fixing your house.