Homeowner Insurance Policies
A homeowner insurance policy is designed to protect homeowners against certain disasters such as fire, lightening, and internal explosions. The standard insurance policies do not cover perils such as damage caused by earthquakes and floods. You need to buy separate policies for them. A standard policy is basically divided into two parts: property protection and liability protection. The property protection is further divided into more categories. These include dwelling, other structures, personal property and loss of use.
Dwelling: This section of the policy covers areas such as the house and also the structures and built in appliances including plumbing, heating, permanently installed air condition systems and the electrical fittings.
Other Structures: Garages, fences, sheds, driveways, and sidewalks fall under this category.
Personal Property: Basically, your personal belongings such as jewelry, sports equipment, entertainment equipment, and furniture fall under this category. The policy covers your off-premises belongings, but it does not cover any off-premises equipment used for business purposes. The policy will cover business equipment if the business is run from home. You must keep in mind that the policy will pay for the cost of the equipment damaged, after calculating its depreciation costs. It is also important to point out that the combined coverage for jewelry, furs and other related items is only $10,000. The reason behind this is to encourage people to opt for additional coverage for these expensive items.
Loss of use: There may be circumstances when you are unable to live in your house because of repairs that have to be carried out due to damages. The policy will cover all your expenses that are over and above the ones required for normal living.
The other major division of the homeowner insurance policy is the liability protection it offers to the policyholder and to his or her family members. This is also divided into two parts. First is the protection that the policy provides in case of lawsuits against the policyholders for bodily injury or damage to property caused accidentally. The other is the medical liability protection cover given to people who are accidentally injured on the policyholder’s property.
Home Owners Insurance provides detailed information about home owners insurance, home owners insurance faq, homeowner insurance companies, homeowner insurance policies and more. Home Owners Insurance is the sister site of First Residential Mortgage.
Choosing The Right Homeowner’s Insurance
As a homeowner, you are required by law to carry homeowner’s insurance. Unfortunately, many people do not carry the right homeowner’s insurance or the correct coverage amount. When buying a new home, most people are anxious to get the buying process...
Is Homeowners Insurance Enough In The Toughest Of Times?
Homeowners Insurance is supposed to protect us in case of disasters. That is what we have come to expect from our homeowners insurance over the years. But what if the disaster is the costliest in U.S. History? What if your insurance agent's home and...
What Is Homeowners Insurance Coverage?
Before attempting to find the best homeowners insurance coverage you should make sure that you are familiar with what homeowners insurance is and what it can do for you. A standard policy provides financial coverage to your house and the property...