Home Insurance Coverage: Protect Your Property

It has been said over and over again, but it deserves reiteration: Every homeowner needs a home insurance coverage. The main purpose of a home insurance coverage is to protect your property. However, more than anything else, the insurance protects you, the homeowner. So how can the coverage protect you and your property?

Property Protection

The first kind of protection a home insurance can provide is directed at the property itself. When you buy a real estate property, it belongs in your name as long as you pay for the requisite property tax and mortgage (if the property is not yet fully paid). Because of this, if your house is damaged by fire, you are responsible for paying for the repairs. Unfortunately, you may not always have enough money to cover the incurred damage. This is where the home insurance coverage comes in.

If your home is insured, the insurance company will be responsible for the costs of your home repair (in other cases, the company will give the policyholder money corresponding to the damage or loss). In short, for the cost depending on the type of policy you get, the insurance is your protection against possible damage or loss relating to your home.

Inclusions and Exclusions

But insurance policies are not absolute. There are some instances wherein the company will not cover the damage or loss. For instance, damage caused by mold and disrepair are not covered by most policies. In addition, flood and earthquake damage, as well as damage done by acts of war, are not covered by most insurance policies. Some policies do cover damage and loss caused by such typical perils, although they require a more expensive premium.

Policies cover damage and loss caused by anything accidental and sudden. Perils such as theft, fire, hail, and tornado are commonly covered. Besides the home itself, the belongings inside the home are also covered, although not as thoroughly. This will depend from policy to policy; homeowners with valuable personal belongings such as expensive jewelry and other luxury items should take note of this.

In any case, the inclusions in the policy depend from provider to provider. Make sure you find a policy that fits your needs, as well as one that protects your most valued assets.

Liability Policy

Besides the property itself, a home insurance coverage can also protect you from any damage, injury, or loss that happens within your residence. For instance, you are legally liable if your neighbor injures himself because he got hit by falling tiles from your roof or if your neighbor's house catches fire (a fire that started from your home). Without an insurance policy, you will have to pay off the necessary repairs or hospitalization. A home insurance policy can provide you with monetary protection in case such accidents happen. Some policies do not offer absolute protection during such occurrences. But at the very least, the home insurance policy will not leave you alone You can expect monetary assistance from your home insurance policy.