The Basics of Home Insurance

Whether you live in a five-bedroom or one-bedroom detached house, where you live is undoubtedly your castle. Therefore, it’s imperative to ensure that your home is well-protected in case something goes wrong.

What if the roof was damaged or there was a fire? Would it be possible to pay for the damages that have occurred? And what would be your home if the house was rendered inhabitable? Your ‘castle’ also contains most of your treasured belongings. Would you be able to pay for another flat screen TV if your home was targeted by burglars?

As a homeowner, it’s advisable to protect your valuable possessions (including your house), from any of the above incidents. Make sure you get the best quote for your home insurance and make sure you get the best price. Our home insurance brokers are available to assist you to make these small but crucial decisions.

What aspects are covered?

A policy under home insurance covers more than just your home. There are various kinds of options with this policy that could prevent you from experiencing financial disaster. These kinds of coverage are often given as a ratio of the home insurance cover. The home insurance cover can, therefore, extend to:

  • Your personal belongings
  • Structures outside like the garage
  • Loss of use – This implies the extra expenses you would incur in case you are not able to live in your home as a result of damage. These expenses include restaurant fee, hotel charges, and laundry fee
  • Liability for the cases where you get sued for injuries or harm caused to other persons
  • Medical bill for guests or other people who incurred harm while in your property

Apart from the above, there are other items that your home insurance can cover, although each has a specific limit. These are:

  • Debris removal
  • Grave markers
  • Downed trees
  • Lawn replacement
  • Blackouts, as well as food spoilage
  • Unauthorized charges to credit cards

Note that home insurance doesn’t cover calamities such as floods and earthquakes – you’ll have to purchase separate policies if you want these kinds of coverage. You may be required to purchase the windstorm insurance separately, although this requirement varies in different parts of the country.

When it comes to the issue of mortgages, lenders often want clients to buy home insurance. When doing so, don’t depend on the cover given by your mortgage lender. These kinds of coverage are usually designed to protect the building itself, but not necessarily what’s in it. That’s why it’s imperative to confirm with your insurance firm to know if you have sufficient coverage.

What to add to your home insurance

Here are additional types of coverage you may need to consider.

Flood insurance – Home insurance do not cover damage due to floods. Using various companies, it has become possible for the National Flood Insurance Program to provide this kind of coverage.

If your mortgage lender ascertains that your home is located in a flood hazard zone, you may be advised to buy flood insurance.

Windstorm Insurance – Although this policy has been included in some homeowner policies, areas prone to hurricanes need homeowners to insure their properties against wind damage. As a result, buying a windstorm coverage is recommended in these areas.

Earthquake insurance – If you’re worried about earthquakes, then you need to purchase earthquake insurance with a different policy.

Umbrella insurance – If you’re looking for additional liability coverage, apart from the car and home insurance, you can purchase a separate umbrella policy. This is a suitable option if you possess so many assets and are prone to a massive lawsuit if you happen to cause damage.

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