Home insurance is a policy that most people have to buy when they purchase a house on a mortgage. The mortgage companies often require it before they will approve someone for a home. Fortunately, it’s premium can sometimes be worked into the house deal if the buyer asks for it. The insurance is not just for people who have a mortgage, however. It’s smart for any homeowner to have such a policy because it can cover him or her in a number of situations. The homeowner’s insurance policy covers multiple items and situations and can make a homeowner feel extremely secure about the property. Areas of coverage may include:
The Housing Structure
The policy may cover the housing foundation and the materials of which the house is crafted. It may cover these materials in the case of a flood, fire or natural disaster such as an earthquake or hurricane. There’s usually a long list of perils that a policy like that covers.
Personal Property
The homeowners insurance policy may cover the insured person’s personal property like clothing, electronics, appliances and the like. Anything that gets damaged or stolen in the home may be covered by the insurance. The consumer has to ask the insurance company about all of its levels of coverage before he purchases the insurance. That way, he will select a plan that best suits his needs and the value of the home.
Liability
Liability is an additional type of coverage that a homeowner policy may have. That covers accidents that may happen to people who visit the property. For example, the policy may pay for a situation in which someone slipped and fell on the ice in the driveway while they were visiting the homeowner. The same may occur if someone were to visit the home and fall on a toy on the floor.
The insurance policy will have an annual premium and then a deductible, which is something that the insured must pay before the insurance company is willing to contribute. The insurance company may allow the insured person to pay the premium monthly instead of annually.