Do You Know What Your Home Insurance Covers?

If you are a homeowner, then it is advisable for you to consider getting a homeowner's insurance policy as a means of protecting your property. This type of insurance is extremely useful in your attempt to protect your home from natural or man-made disasters. The most basic policy under this type of insurance is capable of providing you compensation in case your home gets damaged due to natural disasters such as hurricanes, severe storms and tornados. Damages due to fire is also covered by the insurance. If you are thinking of getting a homeowner's insurance, then you should keep in mind that the most important part of it is not the entire coverage, itself, but the total amount that you will receive after dealing with a disaster that damaged your home and your possessions.

Before buying a homeowner's insurance policy, you have to keep in mind that the coverage differs from one policy to another. The coverage that will be offered to you will depend on the specific area where your home is situated, the actual cost of the property and your closeness to potential damages or dangers like rivers that may trigger flooding. The coverage will also depend upon your proximity to fault lines for earthquakes. The good thing about most homeowner's insurance policies is that these do not only cover your home but also your electric appliances, clothing, furniture and jewelry provided all these can be found in your home before the disaster took place.

You should also know that there are policies that offer a liability coverage. Homeowner's insurance policies that offer this coverage provides you protection in those instances when you are charged of being responsible for someone's injury or for the damage of one's property. If you purchase this policy, then expect to get at least eighteen thousand dollars when you are faced with such ordeal. But you can also purchase an additional premium to up to $1.5 million. If you purchase a policy with a liability coverage, then you can also expect it to cover those injuries that take place within your home.

In addition to providing compensation for defective fall downs and premises, homeowner's insurance is also capable of covering other types of claims including some of your irresponsible conducts that lead to disaster and irresponsible acts committed by your relatives who are also living in the household. However, you have to take note of the fact that you will never get paid if the conducts are committed intentionally. Your insurance provider will only provide compensation if it has been proven that the irresponsible act is accidental and is not done just to get immediate financial assistance. An example of this would be a relative who also lives with you and accidentally injured the eye of your neighbor after carelessly swinging a golf club.

If your home is located in a place which is prone to flooding, then you have to consider getting a homeowner's policy which covers this natural disaster. You can actually get a basic homeowners insurance policy and just purchase an additional coverage which will protect you from flood. Even if your home is built in a place where you think is already high enough, you should still consider getting a flood insurance. The reason behind this is that there are instances when too much pouring of rain can damage your entire home and can still cause your entire property to be flooded.

Before buying a homeowner's insurance, it is also important for you to take note of the fact that most providers offer policies that depend fully on either the actual cash value or the replacement cost of your home. If you get a policy which works under the replacement cost plan, then expect your provider to offer you an amount which can help you repair the damages in your home and replace the items in it. If a fire took place which damaged the furnace in your basement, then expect your insurer to give you an amount which is enough to replace the damaged furnace.

If you purchase a policy which works under the actual cash value plan, then the amount that you will receive will be dependent on the cost of the specific item which is damaged by a disaster. Basing on the situation given above, the amount that you will receive from the furnace damaged by fire will depend on the actual cash value assigned to it. The condition and age of the furnace are considered before assigning the actual value for it.