| What is Homeowners Insurance? | | | | structure of your home; This allows you to repair |
| Homeowners Insurance provides you with the | | | | the home to the state that it was before the |
| coverage in case of a disaster. In the event of a | | | | damage took place. Actual cash value coverage is |
| disaster your homeowners insurance will provide | | | | replacement cost less depreciation. The older your |
| you with financial protection. A homeowners | | | | possessions are, the less you will recover from |
| insurance policy insures the home in which you live | | | | the homeowners insurance company. |
| along with the possessions you keep in it. | | | | Renters Insurance |
| Home Insurance is a Package Policy | | | | Not only is insurance coverage available for |
| Homeowners insurance is purchased in a package | | | | homeowners it is also available for the people who |
| policy. A package policy means that it covers | | | | rent apartments or houses. If you rent a house |
| both damage to your property and your liability or | | | | and you have a renters insurance policy, you will |
| legal responsibility for any injuries and property | | | | be covered in the event of a loss. The coverage |
| damage you or a member of your household | | | | for a renter is relatively inexpensive and will cover |
| cause to other people. Homeowners insurance | | | | your property, your liability, and loss of use of the |
| also covers damage caused by household pets. | | | | home due to a covered loss. |
| A homeowner's insurance policy covers most | | | | Coverage Types |
| disasters, however there are some exceptions | | | | The standard homeowner's insurance policy |
| such as floods, earthquakes and poor | | | | includes four different types of coverage. |
| maintenance (Also known as wear and tear). If | | | | 1) The coverage for the structure of your home |
| you want coverage for floods or earthquakes, | | | | is offered by the homeowner's insurance |
| you will have to purchase separate policies. | | | | company. This means that they will repair or |
| However, maintenance related problems are the | | | | rebuild your home in the event of a covered loss. |
| homeowner's responsibility to take care of. In | | | | 2) The coverage for your personal belongings |
| fact, keeping up with the maintenance of your | | | | that you have in your home is also covered by |
| home will help to reduce the likelihood of a loss in | | | | the homeowner's insurance company. This means |
| the future. A good example of this is the | | | | in the event of a claim that is covered by your |
| replacement of a roof that is showing signs of | | | | insurance policy, your personal belongings will be |
| wear. | | | | able to be replaced. Note: It is a good idea to |
| Overall it is very important to have homeowners | | | | carry replacement cost coverage for your |
| insurance coverage that suits your specific needs. | | | | contents. This way, your items are not |
| You never know when a loss is going to occur | | | | depreciated if there is a loss. With replacement |
| and you are going to need the money to fix it. | | | | cost coverage, your property can be replaced |
| Take Hurricane Katrina for example; there were | | | | with items of like kind and quality. |
| many of people that were without homes | | | | 3) Liability protection covers you in case of a law |
| because they didn't have flood insurance. That is | | | | suit against bodily injury or property damage that |
| why it is very important that you get the proper | | | | you are your family members caused to another |
| coverage. | | | | party. |
| Remember that standard homeowner's policies do | | | | 4) Additional living expenses if you are temporarily |
| not cover flooding so you will have to purchase | | | | unable to live in your home because of an insured |
| that separate through your homeowner's | | | | disaster. |
| insurance agent. Discuss all of the possible | | | | There can be more to a home insurance policy |
| exposures with your agent, broker, or insurance | | | | and there are limitations for certain types of |
| company. | | | | property. It is best to discuss these options with |
| Replacement Cost | | | | a representative at the time your are applying for |
| Replacement cost coverage is available for the | | | | coverage. |