What is Homeowners Insurance?
Homeowners Insurance is designed to protect against economic loss to residences and household personal property, and to cover legal liabilities for injuries and damage arising from residences and personal activities.
Homeowners insurance is a package policy. This means that it covers both damage to your property and your liability or legal responsibility for any injuries or property damage you or members of your family cause to other persons. This includes damage caused by your dog or dogs.
Damage caused by most disasters is covered, but there are some important exceptions. Two of the most significant are damage caused by floods and earthquakes. There are separate policies for flood and earthquake coverage. Maintenance-related damage, or normal wear-and-tear, are the homeowner’s own responsibility.
Why purchase Homeowners Insurance?
It’s all about protecting yourself financially if something unexpected happens to your home or possessions. That’s important because chances are your home is one of your largest investments.
- If your home is destroyed by fire or damaged by a natural disaster, you’d need money to repair or replace it.
- If a guest in your home is injured, liability protection and medical coverage help pay expenses.
- If you are a victim of theft and vandalism, it can reimburse you for your loss or pay for repairs.
- If you are still paying for your home, your lender will require homeowners insurance.
Things to consider and questions to ask us …your agent:
- How much will it cost to rebuild my house and replace my possessions if they are damaged or destroyed? (Your agent can talk you through your home’s special features and help you to come to a valuation of your personal belongings so that you can make an informed decision about coverage.)
- Consider the financial strength and stability of the insurance company. Your agent can provide you with this information for your peace-of-mind. Does the insurer have a good reputation for customer-service and claims payments?
- What’s the process for filing and settling a claim?