Choosing The Right Homeowner’s Insurance
Buying a home is one of the most important investments you will ever make. That's why you need to protect it with homeowner's insurance, which covers your property against damages or disasters such as fires, storms, and theft. But how do you decide what type of policy to buy and how do you know whether or not it offers everything that is necessary to protect your home?
In this post, we will cover these topics and provide plenty of additional tips for selecting the right homeowner's insurance policy for your home.
Section 2: Features (2 Points)
We are now deep into the second section of this assessment. We are going to look at the key features of homeowner's insurance policies, which include…
Liability coverage : This coverage protects your insurance company in case you are found responsible for damages that result from an accident based on your homeowners' policy. Typically, liability coverage is limited to $300,000 – or $500,000 if you live in a high-risk area – that you have available to make a settlement with other parties.
: This coverage protects your insurance company in case you are found responsible for damages that result from an accident based on your homeowners' policy. Typically, liability coverage is limited to $300,000 – or $500,000 if you live in a high-risk area – that you have available to make a settlement with other parties. Personal belongings : This coverage protects all of your personal assets from natural disasters, such as fires and floods.
: This coverage protects all of your personal assets from natural disasters, such as fires and floods. Medical payments : This coverage makes sure that you can pay for essential medical services in case of an accident on your property. Typically, medical payments will cover up to $1,000 for each person injured due to an accident related to the home.
: This coverage makes sure that you can pay for essential medical services in case of an accident on your property. Typically, medical payments will cover up to $1,000 for each person injured due to an accident related to the home. Personal liability : This coverage protects you against any incidents that involve personal injuries, such as slip and fall injuries and bodily damages resulting from an automobile accident.
: This coverage protects you against any incidents that involve personal injuries, such as slip and fall injuries and bodily damages resulting from an automobile accident. Living expenses : If your home is damaged due to a covered event, this type of insurance will help you pay your rent or mortgage while it's being repaired.
: If your home is damaged due to a covered event, this type of insurance will help you pay your rent or mortgage while it's being repaired. Fire and Theft: Homeowner's policies typically cover damages from fire and theft, but you might want to add the coverage of vandalism to make sure your house is protected against any other form of damage.
Section 3: Coverage (6 points)
If that wasn't enough information for you, we are down to the final section in our homeowner's insurance review. This time, we will look at the specific coverage your policy will provide for your home:
Personal property : This coverage protects all of your personal assets from natural disasters, such as fires and floods.
: This coverage protects all of your personal assets from natural disasters, such as fires and floods. Wetlands (land that is subject to periodic flooding): This type of coverage protects against a flood caused by an overflowing river or lake in the surrounding area.
This type of coverage protects against a flood caused by an overflowing river or lake in the surrounding area. Windstorm and hail : If you live in a high-risk area, this coverage will provide protection against windstorms and hail.
: If you live in a high-risk area, this coverage will provide protection against windstorms and hail. Water spillage (leakage of water) : This type of coverage protects your home from water leakage that damages the structure of your home as well as any other part of the property.
: This type of coverage protects your home from water leakage that damages the structure of your home as well as any other part of the property. Damage by vehicles : This covers any damage to your house or car due to an accident involving a vehicle.
: This covers any damage to your house or car due to an accident involving a vehicle. Earthquake or volcanic eruption: This is pretty self-explanatory as it protects against damages caused by earthquakes and volcanic eruptions.
Section 4: Premiums (5 points)
After we have covered all of the different types of coverage, we will now look at the premiums that you will pay for your policy.
Coverage : This is the amount that you will spend on your homeowner's insurance policy. The type of coverage that you buy – liability, personal property, or living expenses – will affect the total premium. Generally speaking, liability and personal property policies are less expensive than living expenses policies; however, there are exceptions for certain states and circumstances
: This is the amount that you will spend on your homeowner's insurance policy. The type of coverage that you buy – liability, personal property, or living expenses – will affect the total premium. Generally speaking, liability and personal property policies are less expensive than living expenses policies; however, there are exceptions for certain states and circumstances Deductible : This is the amount that you have to pay before your insurance company will begin paying out on your claims.
: This is the amount that you have to pay before your insurance company will begin paying out on your claims. Claim frequency (number of claims): This figure represents how many times per year you can file a claim against your homeowners' policy. The number of claims will determine the amount of money that you need to pay over time.
This figure represents how many times per year you can file a claim against your homeowners' policy. The number of claims will determine the amount of money that you need to pay over time. Policy limits: All of the coverage types (except living expenses) have a limit that is specified in your policy. If you exceed this limit, then you will start paying extra for your homeowner's insurance.
If there is one thing that we learned from our website, it's that insurance companies love to use terms and abbreviations, which does not make it easy for consumers to get a clear understanding of their policies.
Conclusion
There's no doubt about it: buying homeowners insurance is not easy for the average consumer. Yet, with the right guidance and information, you will be able to make a well-informed decision. At MyHomeInsurance., we want to help you understand the ins and outs of this type of insurance so that you can find policies that suit your needs.