Homeowners insurance is important for anyone who owns a home. Without this coverage, you run the risk of losing everything should a major mishap occur in your home. Insurance helps the following incidents such as fire, theft, vandalism, and storm damage. Here are some homeowners’ insurance facts you should know.
1. Homeowners Insurance Only Covers Certain Incidents
Homeowners insurance covers most mishaps that can occur in a home. The keyword being “most’, as homeowners insurance doesn’t cover every single incident that could occur. The policy likely includes provisions for fire damage, damage caused by vandalism, and damage caused by theft. But homeowners’ insurance doesn’t cover damage caused by earthquakes or floods. Read your policy carefully so you’ll know what’s included in the coverage.
2. Liability is Included in the Policy
Accidents happen all the time – especially in the home. That’s why it’s important to have liability coverage. If someone is hurt in your home and decides to sue, then your liability insurance will help. You might need help paying legal fees should the case proceed to court. And if you lose the case, you might need help paying the damages. Even if the matter is settled out of court, you’ll still need to pay damages. Without liability, you won’t have any help with these expenses.
3. Homeowners Insurance isn’t for People who Rent
The actual homeowner is responsible for getting an insurance policy for the property. If you live in a rented home, then your landlord should have some type of insurance for the property. But as a renter, you should get renters insurance to cover your personal belongings.
4. Filing a Claim is Relatively Easy
When a mishap occurs in your home, you have to contact your insurance company to file a claim. The mishap must be one that’s covered by your policy. For instance, damage from a kitchen fire is covered as long as your policy covers fire. But damage from a flood isn’t covered if your policy doesn’t include flood damage. After you file the claim your insurer will check to see if the claim is valid. If it is, you’ll get help paying for repairs or replacement items.
Learn More about Your Options
Most homeowners’ insurance policies offer standard options. It’s common to find coverage for fire, vandalism, theft, and liability. If you have additional concerns, speak with your insurer to see what other options are available.