Homeowners Insurance Information
What is Homeowners Insurance?
Homeowers insurance provides financial assistance to you and your family in the event of a disaster. Some common losses paid for by a home insurance policy are: fire, lightning, sinkhole, vandalism, some water losses and in most cases, hurricane. A standard home insurance policy covers not only the home but also the contents inside the home.
(Please note, homeowners insurance is not meant to be a warranty policy, it is designed to cover unexpected damages. Normal upkeep and maintenance is the responsibility of the homeowner.)
A standard homeowners policy is sold as a package. Not only do you have coverage for the home as well as the contents inside, but you also have liability coverage for any injuries that may happen on your premises, or for damage to property of others you or a member of your family may happen to cause. One of the most common liability claims happens from household pets. Not all companies offer animal liability coverage, so it is important that you let your agent know if you have a pet.
A common misconception of the homeowners policy is that losses from Flood damage are covered. FLOOD losses are NEVER covered under a homeowners insurance policy. A separate flood policy can be purchased to cover any flood claim. Please visit our website under the flood tab for more information regarding the definition of a flood and how a flood policy can benefit you and your family.
Why do I need to purchase a homeowners policy?
The best reason is to protect one of your largest investments. If your home was damaged by a natural disaster, by a fire, by theft or vandalism, or if someone was injured on your property, how would you afford to fix the home or replace your contents, or even pay medical expenses for the party that was injured? These are key reasons to have a home insurance policy. This allows for peace of mind in the event of a disaster.
If you have a mortgage on your home, then your lender will require that you have a home insurance policy to protect not only your interest, but theirs as well.
It is important to understand that the purpose of insurance is to place you back into the position that you were in prior to the loss. An annual review of your policy is always recommended to make sure that your coverage is ideal for your needs.
Ways your agent can assist in purchasing homeowners insurance:
- Help to determine the replacement cost of your home
- Help provide details and financial stability information about the company you choose to purchase your insurance from.
- Shop numerous companies to make sure that you get the best rate for the best coverage.
- Explain and make suggestions regarding possible discounts, such as fire/burglar alarms, wind mitigation, multi policy, etc.
- Answer any other questions that you may have about home insurance.