Homeowners Insurance
What is Homeowners' Insurance and why is it important to have it.?
Homeowners insurance is a form of property insurance that protects a private dwelling (residence) in the event of a loss. In addition to protecting the your home's structure, it also covers your home's contents (furniture, appliances, lawn equipment, washer/dryer, bedroom furniture, living furniture, clothing, etc.), loss of use (additional living expenses), liability, and medical payments for guests, As a multi-line insurance product, homeowners insurance covers property and liability. It protects your property, you (whether you're on or off your property) - if you are responsible for someone's injuries, damaged to property other than yours, your homeowners policy will cover you. Medical payments coverage will cover the cost of injuries sustained on your property by guests (not living with you). Example: If you are having a cookout and invite guests to your home, your insurance policy will pay for injuries in the event one of your guest looses his/her balance and falls on your pool deck, kitchen floor, or even in your driveway. The standard limit for this coverage range from $1,000 to $5,000. In general, this covers small medical claims and prevents even larger claims that would result in lawsuits. In the event that happens, the liability portion your your home policy kicks in. The coverage amounts are $100,000 to $500,000 (in general). An Umbrella policy provides even more protection.
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Standard coverage limits are categorized using percentages whereas the main dwelling (Coverage A) bears the vast majority of your home policy's expense.
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Coverage A - Protects the dwelling (home, foundation, built-in appliances, garage, pool, roof, etc.)
Coverage B - Covers other structures (detached garage, shed, gazebo, mail boxes, generator, fences, driveway, etc.)
Coverage C - Personal property (appliances, furniture, jewelry, clothing, books, collectibles, electronics, lawn equipment, etc.)
Coverage D - Loss of use (meals, rent, hotel bills, pet boarding, transpiration, etc.)
Coverage E - Personal liability (legal fees, medical bills, lost wages, property damage - to third parties )
Coverage F - Medical payments (ambulance fees, hospital stays, dental, lab tests)
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The cost of homeowners insurance depends on what it would cost to replace your home, along with additional endorsements (Windstorm coverage, Hail coverage, Screen enclosure and carport coverage, Identity theft, Personal property, Flood coverage, Water backup coverage, Ordinance of law, Dwelling under construction, Extended preplacement cost, Personal injury, Home business endorsement, Equipment breakdown, Service line coverage, Loss assessment, Earthquake, Sewer backup, Inflation guard, Animal liability, Mold and fungus, Sinkhole coverage, Jewelry/furs, Artwork, Theft, etc.)
The Importance of Having Homeowners' Insurance
It is a known fact that homeowners insurance is not required in some cases. It is depended upon what you believe is important when it comes to protecting your property. Without it, you'd be left paying for costly repairs and replacement of of your personal belongings out of your own pocket. Can you afford not to have this type of protection and piece of mind? Here is another example of why you should have this protection. Let's say you have quests over for a cookout. One of the visitors in attendance obtains a slip and fall injury and obtain minor to severe injuries. As the home owner, you could be help liable for their injuries because it happened on your property All of your assets, including your wages, retirement, savings and other personal possessions you own could be on the line if a lawsuit ensues.