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