There are several reasons why a homeowner would purchase a home insurance. First, they bought an insurance that has the cheapest premium regardless of the coverage. Secondly, because it is a loan requirement, thirdly buying the easiest policy without review of coverage limitations and lastly, changing carriers every year with the reason to reduce the premium.
Although all these reasons may be valid at some point, when disasters strike, that’s when it becomes clear how important a home insurance is.
Many homeowners do not understand the coverage and the limitations of their insurance policy. Because most people make a purchase of home insurance with the reasons stated above. That is why it is not the right time to inquire about your policy limitations when you need the insurance.
In this article, we will be discussing the purpose of homeowners insurance and what it and does not cover. This will help you make an important decision when it comes to protecting your home.
Many individuals would purchase insurance because of a cheap premium and not giving a second thought about the coverage. There are many ways to reduce your premium. According to the industry professionals, you can reduce your premium by reviewing your insurance thoroughly once every three to five years.
Many consumers would prefer not to ask for a review because they don’t want to speak with a salesperson. This can be overcome by asking for a review of your insurance policy without the expectations of you buying anything.
What’s the Reason Behind a Home Insurance
If you consider your home as an investment, having it insured is the safest way to protect your asset. Homeowners insurance is designed to cover certain property damages and loss due to several ‘perils’ such as fire or theft. Next on the list, is the liability insurance. The standard policy already covers for liability insurance. This means you are protected from medical costs and lost wages, in the event another person or a visitor got injured in the vicinity of your property.
Hence, in the event of a claim or in the middle of a natural disaster you are protected by your policy wherein you have helped when it comes to the repair or replacement of your home.
In every policy, the coverage is written by the ISO or Insurance Services Office. This is very helpful and beneficial to consumers. The most common coverage found in almost every home insurance policy includes coverage over damage to the property caused by lightning, fire, ice, snow, hail, smoke or explosion.
Home insurance has a coverage that includes liability. Usually, the limitations of coverage will be found on the policy declaration page.
Now, remember, in every insurance policy there is always a limit. Example, your insurance would no longer cover damages caused by flood or earthquake including Acts of War or Nuclear Attack. Damages made to an insured vehicle in the garage or outside the home are not covered as well.
Damages that resulted from instances over a long period of time, such as the case of termites, is also not covered.
But in the end, it is still up to you whether you will be purchasing a home insurance or not. Property insurance is not required by law in most States, unless you are applying for a mortgage, your bank will definitely require for a home insurance. But nevertheless, home insurance is here to provide you with financial protection over your most valuable asset, and that is your home.