It Is Protection In The Purest Form “Homeowners”
You've worked hard to build your net worth, why let a fire set you back 10 years? Homeowners insurance protects you from a financial set back due to a loss from perils such as fire, storm, or theft. Homeowners compensates you for losses to your home and/or your possessions inside the home. Homeowners insurance also protects you if you're legally liable for someone's injuries on your property, as well as other events outlined in your policy.
Other insurances in this group are Condo, Renters, Mobile Home, Vacant Dwelling, Tenant Dwelling, Flood and Personal Umbrella. All play an important part depending on your needs.
General Insurance Protection
While each home insurance policy is different, there are some standard policy provisions:
Valuing Your Home And Possessions
One common mistake is undervaluing your home. True, it will save you a small amount of premium up front but you will suffer loss if you have a claim. Insurance companies will prorate the claim based on real value so the small amount you save today will not even come close to what you stand to loose. We recommend you purchase an amount of coverage at least equal to the estimated replacement cost of your house. It’s important to have enough coverage to account for unforeseen circumstances.
Along with insuring the value of your house, you'll want your personal property insured for the right amount as well. You’ll need a list of your personal property and value. Personal property includes your furniture, clothing, appliances, electronics and other valuables.
Don’t Forget The Liability
Once your home is covered and your personal property is protected, your last step is coverage against liability claims. Don’t leave yourself vulnerable to a liability lawsuit that could erase all you have built for the future.
One overlooked insurance is the umbrella policy which affords you greater protection and very reasonable prices. The umbrella policy is one of the best insurance bargains available, but it is often overlooked or never offered.