Homeowners Insurance: What is it?

Homeowners Insurance: What is it?

Buying a home is a substantial investment that is both immensely rewarding and unnerving at the same time. It is a tremendous step forward for your goals and dreams, but it also brings with it important new responsibilities. Homeowners insurances helps ease the stress of the unknown and lets you have peace of mind when it comes to the security of your newly owned property.

Home insurance helps protect homeowners by covering damages that might occur outside and inside of the structure, loss of personal items within the home, and liability claims. In the event of a claim the major coverage components of a homeowners policy are as follows:

  1. Dwelling
  2. Other Structures
  3. Personal Property
  4. Additional Living Expenses
  5. Personal Liability
  6. Medical Payments to others

Homeowners policies cover many different issues that might arise during home ownership, but it does not cover every accident that might occur. It is important to note that damage caused by most natural disasters – such as earthquakes and floods – are not covered in a homeowners policy. A separate policy will need to be purchased in order to be insured for these types of events. Mechanical failures and general maintenance issues are also not covered in a homeowners policy. Be sure to refer to your agent for specific coverage details and questions to know the coverage you have in your policy.