For most of us, buying a home is one of the largest investments we will ever make, which is why it’s so important to have adequate home insurance. Homeowners insurance is not a luxury; it’s a necessity. Not only does it protect your home and valuable assets from damage or theft, but virtually all mortgage companies require borrowers to have home insurance coverage.
Insurance isn’t just for homeowners; many landlords require their tenants to have renters insurance. Whether it’s required or not, it’s smart to have this kind of protection in place in case you need it.
Don’t you want to live with peace of mind?
What Does Home Insurance Provide?
While homeowners insurance is infinitely customizable, each policy has certain standard elements that provide what costs the insurer will cover.
Dwelling Coverage
Dwelling Coverage assures your home and attached structures like a garage are protected from covered perils.
This could include:
- Fire and smoke damage
- Windstorms
- Hail and lightning
- Vandalism
- Theft
- Damage from a vehicle
- Damage caused by the weight of snow, sleet or ice
You’ll likely have to make a decision between two coverage options: replacement cost and actual cash value.
Other Property
Other Property Home insurance covers structures on your property that are not attached to your home. This could include a detached garage, shed or fence.
Personal Property Coverage
Personal Property Coverage protects everything inside of your home. This could include:
- Furniture
- Electronics
- Appliances
- Clothing
Managing Editor from Insurance.com, Les Masterson, says that “If you have expensive items, you may need a separate endorsement for valuables. You add an endorsement, also called a rider, to your insurance policy to protect valuable property. An endorsement can include jewelry, fine art, guns, and sports memorabilia.”
Home Liability Insurance Coverage
Liability Insurance covers you if a visitor inside of your home were to be injured. According to Donald Griffin, Vice President of personal lines for the Property Casualty Insurers Association of America (PCIAA), many liability insurance policies will cover you, even if an accident happens away from your home, which is why it’s so important.
Griffin recommends buying an excess liability or an umbrella policy that offers coverage of $1 million beyond your home insurance and car insurance policy. These policies are relatively inexpensive, often only costing $200 to $300 per year.
It’s also important to know the difference between medical payments and liability insurance. Medical payments pay out, typically in limits of $1,000 or $5,000 for injuries regardless of who is at fault.
Additional Living Expenses (ALE)
ALE covers you if your home is damaged and you have to live somewhere else while it’s repaired. ALE coverage can accommodate your hotel room, meals and other travel expenses while you are displaced.
Talk To A Professional About Your Home Insurance Needs
If you have questions about what you currently have, or need, talk with a member of the Corwin-Rey team today!
We can help you:
- Save money on your home insurance.
- Help you choose the best coverage for your situation.
- Help you fix an insurance claim.
- Give you confidence in your coverage if the unexpected happens.
To get even more technical about your specific, personal home insurance needs, give the Corwin-Rey team a call today at (360) 414-8754.