Going by the drastic increase in climate change and weather, as well as the unpredictability of what damage may happen to your home, it is now more relevant than ever buy insurance policies which cover homes. However, you don’t wake up one morning and decide to use the services of a homeowner insurance company. You need to first, understand what this type of insurance is all about, and whether you need it or not.
What then is Homeowner Insurance?
This is a type of insurance that covers damages that may be caused to the home of its holder, or belongings in the home. As a type of property insurance, homeowner insurance also covers certain accidents that occur in the home of people who hold this insurance policy.
Note that even though you may have a commercial automobile in your garage, homeowner insurance doesn’t cover it in the event that disaster strikes both the house and the car. As a Houston resident, consider purchasing a policy from any of the companies selling Home Insurance Houston TX
Back to the main issue, different grades of homeowner insurance policies exist in the United States since all homes are not worth the same. Based on the perceived value of the home, the policy holders pay varying amounts in premium to the insurer depending on the degree of insurance needed for their homes. This grading system is classified from HO-1 to HO-8, with the “HO” representing Home Owner.
The Major Aspects of Homeowners Insurance
It is true that homeowners insurance covers most of the damages that may happen to your home. But then, there are certain occurrences that they don’t cover, and for understandable reasons.
Ideally, the average homeowner insurance policy covers for the following areas and eventualities:
- The damage of holder’s possession
- Damage to the holder’s home as stipulated in the policy
- Other stipulated living expenses.
Basically, all homeowner insurance policies cover the four areas stated above. Having highlighted them, we may hence proceed with even more important details about each of them.
So long you pay your premium; you will enjoy coverage under this insurance range from your clothes to furniture to electronic gadgets in your home. But will this be of any advantage? You may ask. The point, however, remains that this coverage will be very indispensible for homeowners who have a lot of expensive possessions.
There is a limit to which your insurer can cover for the damage or loss of exorbitant possession such as jewelries and collectibles. If you are not comfortable with this option, you may have to order special coverage for the chosen item such as jewelry insurance.
So take inventory of the items you own whether they are currently in your home or stored elsewhere. This may vary from company to company since some cover just the items in your home while the other cover your belongings wherever they may be in the world.
The House Itself
This is another aspect of homeowner insurance which, for many homeowners, is the most important. What this term guarantees you is that your insurer will cover the expenses for the rebuild of your home in the event that it gets partially damaged or completely destroyed by disasters agreed in the policy. These disasters include fire and other natural ones such as hail storm, tornado or hurricane.
As you may have noticed, this insurance does not cover for the gradual and natural defacing or wear which happens to virtually every object. The same holds for unpredictable disasters such as flood and earthquakes. Now you may be wondering what use this insurance is if it does not cover certain eventualities. It is rational to skeptical but this may be the point where you adopt the epic advice expert would give: buy covering worth the cost of rebuilding your home from scratch.
While the emphasis is on your main building–the one in which you live–many insurers have room for auxiliary structures such as your garage, most policies also cover detached structures such as a garage and gazebo. Depending on the company of choice, it could be free or worth one-tenth the total cost of insuring the main building.
This aspect of homeowner insurance guarantees that you will get the relevant coverage in the event of associated law suits. By associated lawsuits, it goes to say that is, for instance, a neighbor sues you for an injury in your home, your insurance company will move in to offset the bills. You need to understand, however, that this insurance does not cover you or any member of your household who gets injured in your own home.
In another perspective, we can look at it from this point of view. If your kid happens to ruin a neighbor’s property, a lawn for instance, this insurance also covers any expenses that your neighbor’s lawsuit may cause. Summarily, homeowner insurance covers any liability that may come your way if you or any member of your household causes any litigable damage to others in one way or the other. Interestingly, this covers you even if your dog or cat is responsible for the damage.
Favorable as this policy may be for its holder, it is not without its limitations. Your insurer will not cover for every cost. There is a limit to the mount they will release when the need arises. For many insurers, this starts at $100,000, depending on the company your patronize and the amount of premium you pay. For best measure, it is best to assess the value of expected liability and perhaps, the worth of your home. This will help you make the best choice as regards purchasing your ideal homeowners insurance.
Additional Living Expenses
Simply known as ALE in the insurance world, it covers the cost of living of an individual that holds a homeowners insurance policy in the event that the individual has to temporarily live away from home. While a damaged home is being rebuilt, this policy pays living expenses such as meals and temporary accommodation in a hotel.
Owing to the importance of this additional protection, some insurance companies create special ALE packages which are ideal for clients living in areas that greatly predispose their homes.
As long as homeowner insurance is concerned, just as it is with homeowner insurance Houston Tx, your chief concern is to seal the best available deal. To achieve this, you need to spend some time shopping around. Only proceed with a homeowner insurance after you must have decided on how much of it you need and which company offers you the ideal package at the most reasonable rate.