Home insurance, also known as homeowners insurance, is an important kind of insurance that covers a home. This type of insurance helps protect the investment you have made on your home. It also serves as protection in the event of unexpected disasters such as fires, earthquakes, storms, hurricanes and other disasters. In fact, a standard homeowners policy can cost you more than $1 million, depending on where you live and the structure of your home. Although homeowners insurance has been around for a long time, there are several things you need to know if you plan to buy a policy. Below are some of the most common questions homeowners need to ask when looking for homeowners insurance.
How will the insurer pay for rebuilding costs for my home if a disaster caused it to collapse? Most insurers will set up a special fund in which they will reimburse your homeowners for rebuilding costs. Usually, this will come from the insurer’s capital. If you own the house, the insurer generally transfers the ownership to you upon purchase.
What are the typical covered damages under my homeowners insurance policy cover? Your policy typically provides coverage for damage due to fires, explosions, smoke, flood, lightning strikes, vandalism, theft, vandalism or theft, flood, windstorm, hurricanes, and other disasters. In fact, almost all kinds of disasters are covered under a typical homeowners insurance policy. The exceptions are Acts of God, which are generally excluded from most policies.
How are dwelling and personal property insured? Your policy typically provides coverage for damage and loss due to theft, storm damage, fire damage and smoke damage. Additionally, a lender may require you to purchase renters insurance to provide coverage for your personal belongings while living in your home. In general, however, these policies do not provide coverage to replace the cost of replacing your living expenses, which typically include housing and food costs.
Is my homeowners insurance policy designed to rebuild my home if it is damaged beyond repair? A typical homeowners insurance policy will generally provide coverage to rebuild your home, as long as you have coverage on other areas. For example, your policy typically provides coverage to rebuild your kitchen or bathtub and may even pay to repair your windows. Homeowners insurance coverage typically only covers your dwelling and personal property, not personal items kept in storage.
What areas is my homeowners insurance policy typically covered? The typical homeowners insurance policy typically covers damages resulting from an earthquake, fire, explosion, windstorm, hail, vandalism, theft, or natural disaster. However, there are some states that do not provide coverage for flood damage. Your homeowners insurance companies typically will determine the areas in which your homeowners policy covers and will discuss the details with you. For example, a standard homeowners insurance policy typically will not cover damages resulting from an earthquake in an area prone to earthquakes.
Does my homeowners policy provide additional coverage for damage due to smoke or carbon monoxide? A normal homeowners policy will provide coverage for damage resulting from a fire or explosion caused by gas leaks, cigarettes smoke, carbon monoxide poisoning, vandalism, and windstorm damage. However, additional coverage may be available if your insurer has special or unique coverage provisions.
How can I best evaluate the value of my belongings? Your homeowners insurance policies typically will list a suggested value for your belongings. You might need to increase this suggested value to account for damaged, lost, or stolen possessions. Your insurer might require additional information to help determine your actual worth and will review this value with your appraiser.