Why You Need Homeowners Insurance
Author: Chris A. Harmenbr
Source: ezinearticles.combr
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If you find yourself wondering if you really, truly need homeowners insurance, you might ask yourself if you can afford to rebuild your home without it. For most people, rebuilding a home from scratch without any sort of insurance wouldnt be a possibility. While the economy has made money tight for lots of people for a while now, getting rid of your home insurance isnt an option. In fact, if you have a mortgage, having homeowners insurance is required.
Before a mortgage loan becomes final, lenders require homebuyers to purchase at least a kind of hazard insurance, which is a minimal level of standard home insurance. This not only ends up protecting your investment, but the mortgage companys investment as well. And having this insurance is definitely worth it in the long run, since it protects you from being financially responsible for losses from theft and many natural disasters.
What Home Insurance Covers
Its obvious that this type of insurance covers the home, but what exactly does that mean? Generally speaking, your insurance policy will cover any costs associated with repairing or rebuilding your home in the case of catastrophe. Home insurance also covers other physical structures on your property, like any detached garages, sheds, or swimming pools. While these are the actual buildings covered, homeowners policies also cover most of the personal items you keep in your house – furniture, clothing, electronics, and almost anything else that might be enticing to burglars.
Standard homeowners policies also cover most types of personal injury claims. For example, what if a deliveryman visiting your house happens to slip on a patch of ice, or gets bitten by your dog? Though unfortunate, these things can happen. Personal liability insurance can prevent you and your family from being sued, and will pay for the persons medical expenses and other losses, up to a certain amount. However, some types of homeowners insurance dont necessarily cover personal injuries, and lenders dont always require this component of home insurance either. Be sure to check with your insurance carrier to see what types of injuries are covered.
Special Considerations – Insurance For Your Home
Depending on the area where you live, you may be prone to floods, fires, earthquakes, or hurricanes. However, damage from many of these natural disasters may not be covered under your standard home hazard insurance. You most likely will have to purchase additional insurance policies to cover these types of damage. Usually, when you first discuss home insurance options upon finalizing a mortgage agreement, the insurance carrier will clearly let you know what they require you to have, and whats covered under that policy. Youll be able to purchase additional insurance if necessary. You may also need to buy extra homeowners insurance to cover expensive jewelry, art, furs, or business equipment.
Its a good idea to take an inventory of all the belongings in your home every few years. Make a list of everything worth more than about $50, and take pictures of these items. Write down a complete description of everything, including the make, model, and serial number; record the items location; take down its purchase price and current value; and the location of any extra supporting materials that go with the item. Make a copy of this inventory and keep one copy in a safe place like a fire-resistant cabinet. Give another copy to a family member, friend, or neighbor.
Homeowners insurance is very important to keep you from having to pay for repair damages to your property. Contact your insurance agent today to find out exactly what your policy covers.
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pChris Harmen writes for Joseph M. Wiedemann Sons, a a target=_new href=http://www.jmwsons.com/ rel=nofollowhome insurance, Chicago/a, company with over 70 years of experience in commercial, personal, and a target=_new href=http://www.jmwsons.com/home-insurance rel=nofollowhomeowners insurance, Chicago/a./pbr
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