When you own a home, you will need to have some type of homeowner's insurance policy to protect your assets. A basic homeowner's insurance plan will have protection for the structure of your home, coverage for the belongings inside your home, coverage in the event someone gets hurt on your property in the form of liability insurance, and coverage if your home becomes inhabitable and you need to live somewhere else for a period of time. The amount of each type of coverage is going to vary depending on the policy limits you choose and the premium you pay for coverage. You can add on additional coverage that is optional to give your home and assets further protection.
Know What Your Policy Will Cover
While you might invest in a standard homeowner's insurance plan, you will want to know the details of what your plan covers. Damage from a fire, theft, water damage, hurricane, smoke, vandalism, falling objects, and more are specified in your homeowner's insurance policy. If you live in an area that is prone to floods, for example, you will want to make sure that your policy protects your home in the event there is a substantial flood. If there is an event at your home that causes damage, you will need to look over your policy carefully to see if it is covered.
Understanding Your Liability Coverage
People can get hurt at your home when they are there visiting, or at your home completing work you have hired them to do. Liability coverage helps protect you if you are sued, paying your court costs and any award that the plaintiff wins up to your coverage amount. If you are found negligent, your liability coverage protects you as the homeowner.
Homeowner's Insurance Policy Levels
Your insurance can cover your losses at actual cash value, at full replacement cost, or the most expensive type of policy, a guaranteed replacement cost. The actual cash value is the cheapest type of policy, and you are going to spend money out of pocket if you have a disaster. Full replacement cost takes care of replacing lost assets, up to the policy limits. A guaranteed replacement cost replaces your losses even if they exceed the policy limits.
Take the time to investigate your potential losses and make sure your insurance policy covers you sufficiently. Invest in a homeowner's insurance policy to keep your home protected.