You think it never will happen to you. Surely you never will have a fire, theft, storm, or accident in your home. But, if the unthinkable does happen, you’ll want to have homeowners insurance to protect you. Homeowners insurance is there during your times of greatest need to protect what is probably your biggest asset. So, is it necessary? By all means. Not only for you, but it’s usually required by your mortgage lender. Before we consider that, let’s look at what a typical homeowners insurance policy provides.
What’s In a Homeowners Insurance Policy?
Homeowners insurance provides coverage to your home, coverage for your personal belongings, liability protection, and additional living expenses.
The House Structure Is Covered
Your homeowners insurance pays to repair or rebuild your home and other structures from damage that is covered in the policy, most often including theft, fire, storm, or other natural disasters.
- When deciding a coverage amount, it’s a good idea to make sure you have enough to completely rebuild your house. Get a quote from a local builder or real estate agent for an approximate amount.
- Damages can be covered at cash value or replacement value. Cash value pays what the property is worth today with depreciation, while replacement value pays enough to replace what you lost.
Personal Belongings May Need to be Replaced
Furniture, clothes and other contents of your home that are stolen or otherwise destroyed by an insured event are covered by your homeowners insurance policy.
- You can choose to have off-premises coverage so your items are covered anywhere in the world should they get lost or damaged.
- Making a video or photographs of your home’s contents can be extremely helpful. If you ever need to submit a claim, it’s an easy way to remember and prove what you lost.
Liability Coverage Is Essential
The liability aspect of homeowners insurance covers your legal responsibility for injuries to others or their property. For example, let’s assume your neighbor falls down your front steps and breaks her arm.
Your liability insurance will cover her medical expenses up to the policy limit.
- If she decides to sue you for damages, you also will be protected, up to the limits in your policy.
- Liability insurance is not limited to your premises. So, if your dog bites your neighbor while out on a walk, your homeowners insurance policy will likely cover you.
Additional Living Expenses Will be Paid
If you’re unable to live in your home due to a fire or other insured incident, your homeowners insurance policy may offer additional living expenses, including hotel and meals, up to a certain limit detailed in your policy.
What’s Not Covered
There are limits to a homeowners insurance policy. Homeowners insurance doesn’t cover damage caused by flood, earthquakes, or normal wear and tear of your home. Be sure you review your policy so you know what’s covered.
Homeowners Insurance Is Not Just for You
Mortgage lenders require homeowners insurance to protect them. Should something happen to your home, they need a way to cover their large monetary loss. Lenders often require you to buy at least a minimal amount, usually the amount of the mortgage. But, as you consider your home and belongings, more than minimum protection may be a good idea.
Don’t Leave It to Chance
You love your home. Make sure you, your belongings, and house are protected should a disaster happen. Having homeowners insurance in place can help protect you should a theft, fire, or other natural disaster strike.
As your independent Massachusetts insurance agent, we have a wealth of knowledge that can help determine your exact needs for homeowners insurance. Contact us today for a free quote, and you can sleep tonight knowing your home is covered. Call or click us today.