|
Homeowners insurance is a package policy.
This means that it 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. This
includes damage caused by household pets.
Damage caused by most disasters is covered
but there are exceptions. The most significant are damage caused
by floods, earthquakes and poor 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. That's important
because chances are your home is likely one of your largest investments.
- 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.
It is important to know that homeowners
insurance is meant to cover unexpected damage, not routine maintenance.
Ask your agent to talk about what is covered and be sure to read
your policy so you know exactly what's included and what is not.
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? (Ask
your agent to talk you through your home's features and the things
you own so you can make an informed decision about coverage.)
- Does the insurance company have a good
reputation for customer service? Is it known for paying claims
fairly and promptly?
- What discounts are available? (Ask about
multiple policy, security system and fire resistance discounts.)
- What's the process for filing and settling
a claim? (Ask who to call and what happens after you file a claim.)
|