What is Homeowners insurance?
Homeowners insurance provides financial protection against disasters. It is a package policy that 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.
Damage caused by most disasters is covered but there are exceptions. The most common are damage caused by floods, earthquakes and low maintenance. You must buy two separate policies for flood and earthquake coverage. Maintenance-related problems are the homeowners' responsibility.
Why do you need homeowners insurance?
It is really all about protecting yourself financially if something unexpected happens to your home or possessions. If your home was destroyed by fire or damaged by a natural disaster, you'd need money to repair or replace it.
- If a guest in your home is injured, liability protection and medical coverage help pay expenses.
- If you are a victim of theft and vandalism, it can reimburse you for your loss or pay for repairs.
- If you are still paying for your home, your lender will require insurance.
Things to consider and questions to ask your agent
Here are few things to discuss with your agent that will influence your decisions.
- How much will it cost to rebuild my house and replace my belongings if they are damaged or destroyed?
- Does the insurance company have a good reputation for customer service?
- What discounts are available? ( multiple policy, security system discounts.)
- What's the process for filing a claim?