The Homeowners Concept – What You Need to Know About Home Owners Insurance
If you're shopping for homeowners insurance, there's more to think
about than just how much it will cost. You'll have to make sure
you have the right kind of policy. You may need special provisions
for valuables, such as jewelry, computer equipment, and other possessions.
There is more to this homeowners concept then just writing out
a check! You need to do some hard thinking about what your requirements
You'll also need additional coverage
if you live in an area that is in danger of earthquakes and flooding.
Your lending institution will probably require you to purchase
homeowners insurance. Don't rely on their mandated level of coverage,
though. These levels of coverage will protect their investment – the
house – but
not necessarily any of your possessions. It's important to make
sure that you check with your insurance broker to be certain you
have the levels of coverage that are appropriate for your needs.
Homeowners policies can provide limited property coverage for
incidental occupancy of the building. This means that you can be
covered in a limited area when you use your house for a home office
or studio. To do this, you should meet two requirements. You must
occupy the premise primarily as living space, and you can't use
it for any kind of business purpose other than your office or studio.
Homeowners policies generally provide a combination of property
and liability coverage. They cover loss of use resulting from damage
to the property. They range from the basic homeowners policy, which
covers your house and possession against eleven different sources
of damage, all the way up to an extensive policy, which covers
damage from everything except earthquake, war, and flood. The homeowners
insurance umbrella also covers plans for condo owners and renter's
Each homeowners policy has three preliminary sections. These sections
are the declarations page, general agreement, and definitions.
There are also two coverage sections. The declarations page contains
all the specific times and periods of coverage, as well as the
policy number and information about the insured and their property.
The general agreement outlines the insurer's coverage and obligations
to the consumer as well as the obligations that are set up in return.
The definitions section contains all the information and terms
that are defined within the policy. The coverage sections include
all the insurance coverage that applies to the particular policy.
Additional coverage is also available on all homeowners forms to
expand the types of losses covered. Options for additional coverage
include debris removal, reasonable repairs, fire department service
charges, loss assessment, glazing, collapse, and other additions.
Home owners insurance is important if you're looking into buying
a house. You'll need this kind of coverage if you get a mortgage.
Fortunately, homeowners insurance isn't difficult to understand.
When you apply for homeowners insurance, you'll need to provide
a great deal of personal information. The insurance company wants
to make sure that you're a good risk. They'll look into you criminal,
credit, and insurance history, as well as any claims you might
have made in the past. Then, if you're approved, you'll have to
decide what kind of policy you want, and your deductible, and work
with your agent to determine price. Your insurer will set the value
on your home and personal property.