Homeowners insurance is how we protect our homes in case of disaster, either by natural causes or human hand. By paying a premium to the insurance company, you no longer are solely financially responsible for your property. For example, if a tornado hits your home, you don’t have to find a way to rebuild by yourself.
There is no law requiring homeowners insurance. However, most mortgage companies require it in order to get a loan. Additionally, most experts would suggest you have a good policy in case of a disaster.
Here are four things you should understand about homeowners policies so that you can find the right one for you.
#1: What Does Your Homeowners Insurance Cover?
- The Building
Homeowners insurance covers the structure of your home. If the property receives damage, your insurance covers the cost of repairing or rebuilding the home. It may not cover the entirety of the costs depending on your insurance policy stipulations. Also, not all policies cover all types of disasters, such as flooding or earthquakes.
- Your Belongings
If a covered disaster ruins your possessions, your insurance can help recover your losses. This may include your furniture, art, and family heirlooms. It is advisable to keep records of your possessions as proof of ownership. It is also important that you know that your policy may not cover everything 100%. If you have something very valuable in your home, you may want to consider buying a separate policy for that item.
- Personal Liability
Personal liability kicks in if someone outside of your family is injured on your property. If they decide to sue, your homeowner’s coverage assists with the cost of a settlement.
It also comes into play if someone in your family damages someone else’s property. Some insurance even covers the damages your pets do to other’s property.
- Loss Of Use
If your family is forced to leave home so that repairs can be made, loss of use coverage will help pay for your living expenses for a short period of time. This could include hotels and meals while you are displaced.
#2 What Type of Homeowners Insurance Can You Buy?
The coverage you get is based on how much you are willing to pay. The lowest value of coverage is cash value coverage. What you paid for your home ten years ago may not be what your home is worth now or the amount it will cost to repair or replace it. Cash value coverage may not cover the entire amount needed to replace your losses.
An alternative to cash value coverage is replacement cost coverage. While generally more expensive, this insurance will cover the actual cost of replacing the items and repairing the damage. Replacement cost coverage guarantees that homeowners can rebuild or replace their property no matter the cost.
Pricing Of Homeowners Insurance
The prices of insurance policies vary depending on a number of factors. These include:
- The Value of the Home
- The Current Condition of the Home
- The Location of the Home
- Dangerous Structures on the Property
- High-Risk Factors (pools, trampolines, etc.)
- Homeowners History (credit history, past claims, etc.)
- Desired Level of Coverage
What Do I Do If They Refuse To Payout?
Anyone who feels that they aren’t receiving the coverage they paid for should contact a public insurance claim adjuster. Aftermath Adjusters & Consulting helps homeowners receive what they are owed by reviewing the damages and policy and working as a mediator with your insurance company to help you receive a fair settlement. A public adjuster acts in the homeowner’s best interest and will attempt to renegotiate a claim. Call Aftermath Adjusters today so that we can help you get the money you deserve and get back on your feet after a disaster.