What is homeowners insurance?
Homeowner’s insurance is designed to protect your home. It is also known as hazard insurance, or fire insurance. While the lender requires this coverage, you determine which insurance company will carry the policy. Homeowner’s insurance premiums are either paid directly to the insurance agency or financed into your loan.
Generally, speaking a homeowners insurance covers the home itself and the things you keep in it. Homeowners insurance is a package policy. This means that it covers both damage to your property and your liability or legal responsibility for any injuries and property damage you or members of your family cause to other people.
The typical homeowners policy has two main sections: 1) coverage for the physical property of the insured and 2) personal liability coverage to the insured. #1 covers damage to your house, its contents, landscaping, etc. Make sure you understand what is covered. Most homeowners insurance does not cover damage from floods, and many have exemptions for wind damage as well. Special insurance may be required. #2 covers the insured from claims made by people who may have been hurt on your property. It does not cover claims such as slander.
The typical homeowners policy has two main sections: 1) covers the property of the insured and 2) provides personal liability coverage to the insured. Ask your insurance agent about your homeowners insurance limits. Many homeowners wont cover high-valued personal property. Most do not cover floods and many wont cover wind damage.
is the coverage provided for damage to your home and other structures on your property. It also provides coverage for the contents within the home. There is a much needed liability component to homeowners insurance as well. The liability portion of the policy will provide protection for you should someone get hurt while visiting you and negligence can be proven.
