What You Need to Know about Homeowner’s Insurance

"What You Need to Know about Homeowner’s Insurance If you own your own home, the most important thing to know about homeowner’s insurance is ..."

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What You Need to Know about Homeowner’s Insurance

If you own your own home, the most important thing to know about homeowner’s insurance is that you need it. In most cases, the bank that holds your mortgage will require that you have a homeowner’s insurance policy with a certain amount of coverage. Even if you don’t own your home, renters can benefit from the protection of a renter’s insurance policy. Either way, here are some important things you need to know about insuring your home, before you choose an insurance policy. And remember, you don’t have to use the insurer recommended by your bank.

Homeowner’s insurance protects people as well as property

If someone is seriously injured on your property, and they sue you for damages, how will you pay for that? This is one this that is covered by a good homeowner’s insurance policy that is commonly overlooked. Not only does your insurance policy protect you in case your home is damaged, it also protects you from liability for accidents that happen on your property.

Your level of coverage affects your insurance premium

As we mentioned before, your lender will almost certainly require a minimum level of coverage as long as they hold the mortgage, but beyond that, the amount of coverage you purchase is up to you. Having a higher amount of insurance coverage means that you will pay less out of pocket if you have to file a claim in the event of a disaster, but it will also increase the cost of your insurance policy. With some careful planning, you can find the right balance between coverage level and insurance premium cost.

Homeowner’s insurance covers some things, but not others

Look at the details of each insurance policy carefully before buying it, because different home insurance packages will offer protection for different things. For example, most policies cover property damage, theft and personal liability, but you may require separate insurance for specific natural disasters such as floods. Just as important as knowing what is covered under your home or renter’s insurance policy is knowing what is not covered.

Your insurance needs may change

You should check with your insurance provider on a yearly basis to make sure your policy meets your coverage needs, especially if you have made any changes to your home. Anything that affects your home’s value, such as a room addition, or potential liability, such as a swimming pool installation, can affect your insurance needs and costs.

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