About Home Owners Insurance

What Is Home Insurance?

For many people their home is a major investment and where a large portion of their wealth is tied up, so it makes sense to ensure that your most valuable possession is covered against damage and theft. It takes people between ten and 30 years to pay a mortgage off because of the expense of property these days and having the appropriate home insurance is the only way to look after your asset and ensure it is covered against any eventuality. More than 80% of US homes are covered by insurance and these days mortgage lenders make it a prerequisite for qualifying for a bond to ensure they are covered in the event that something happens to your house before you have finished paying it off.

Home insurance policies usually cover: the value of the home structure, the personal belongings inside your home, liability protection and additional living expenses in the event that your home is destroyed and needs to be rebuilt so that your family can be comfortable during the process.


Your Home Structure

Your insurance policy should cover your home for repair and rebuilding in the event that it is struck by a hurricane, lighting, fire or hail; earthquakes and flooding are generally exempt from most policies. While you may not think it likely that your home will ever be destroyed, it is important to make sure you have any cover to be able to rebuild if necessary. This section also usually covers buildings that are detached from the main building such as a garage, tool shed or outdoor gazebo.


Your Personal Belongings

The things inside your home- furnishings, clothing and other personal items are also covered under a home insurance policy. The amount covered is usually between 50 and 70% of the sum your home is insured for. In order to work out how much you will need for personal belongings make sure that you do an inventory and check replacement values on items if they were purchased a while ago. This section of your policy usually incorporates off-premises cover unless you have opted out of this. You may also receive up to $500 coverage for unauthorized transactions on your credit card.

Expensive personal items, like jewelry and fur coats, are usually limited to a dollar value. If you have a lot of jewelry or expensive personal items you may need to take a separate policy out.


Liability Coverage

Any property damage or bodily injury caused by your family to other people is incorporated under liability coverage, it also includes your court defense and legal expenses, to a limit described in your policy. It also covers the cost of medical care in the event that someone is injured on your property.


Additional Living Expenses

If your home is destroyed and needs to be repaired you need to find somewhere else to live. This portion of your cover usually includes hotels costs and restaurants while your home is rebuilt. It is usually limited to 20% of your home insurance value.