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