The Necessity of Homeowners Insurance

July 16, 2015
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George, a resident of Chicago, talks with much ado about how his decision to invest a small chunk of money into Homeowners' Insurance has earned him a reliable cover for any unforeseen incidents occurring with any of his personal property. Reducing one's expenses to invest in Insurance is not a bad deal, especially when it comes to the property which is a fruit of your hard-earned money; it should be insured from any unwanted occurrence. But many of you still feel perplexed about the intricacies of the coverage, and refrain from taking one because of lack of reliable information. Hence, let's start with the basics:

What Is Homeowners' Insurance?

Home Insurance is a type of property insurance which is designed to cover any damages occurring to the house which are unanticipated or unforeseen. Homeowners' Insurance covers both, damages to the house and to the possessions. Though this type of insurance covers almost all types of losses, some events are excluded such as floods, earthquakes or to be more precise, events which are result of "acts of God".

Although, the law doesn't enforce an obligation to get your house or property covered, it is required by the mortgage companies to lend you the money. In addition to that, it also provides financial cover if you or one of your family members is held legally responsible for the damage caused to others' or their property.

What Does Homeowners' Insurance Cover?

When it comes to buying an insurance policy for your home, everything that a customer care about is-what is in it for me? Let's give a brief look to know what is covered in a Homeowners policy:

  • Dwelling Coverage: If the damage to your house is the covered cause of loss, it helps you rebuild or repair you house and the expenses related to it are covered. Be sure to buy enough dwelling coverage to compensate for the cost of rebuild.
  • Liability Insurance: Suppose you organized a party at your home, in your verandah and co-incidentally a part of your verandah falls down on a guest, injuring him badly. If that guest sue you for the damage caused, liability insurance covers that type of damage where legal obligation falls upon you to injure another person. Generally, $100,000 is a good yardstick for Liability Insurance but it may vary depending upon other related factors.
  • Personal Property Coverage: Compensates the insured party for the damage caused to any personal property by the covered cause of loss. Most top insurance companies provides personal property coverage.
  • Loss of use: If your property is so heavily damaged that it requires you to move out of that place and live at some other place before your own possession gets repaired, this loss of use is also covered under Homeowners' Insurance.

What to Look For Before Buying Homeowners' Insurance

Undoubtedly, it is a big decision to shell out some money and pour it into securing your property. Hence, there are certain things that should be taken care of before buying a Homeowners' Insurance. They are following:

  1. Look for what are the Insurance services provided by the company. It generally covers private residence and is divided into two parts- liability coverage and property protection. Take into consideration that enough coverage is provided or not to compensate for the losses caused due to any damage.
  2. In order to know how much a homeowner policy will cost, choose an independent insurance agency that can quote you home through 20-30 carriers at one time. As not all insurance carriers cater to the same type risk, some Home Insurance carriers may have better rates than others. Price is a significant factor and should be decided after thorough research.
  3. See where company stands in terms of customer service and quality. Look as to how much time it takes to claim and receive the money. It is the value that you are paying for and customer service and claims should be the topmost priority.
  4. Various insurance companies provides policy discounts which helps you in saving money and getting the best out of the invested sum. Common discount includes multiple policies, fire safety net etc. Look for policy discounts to get the best and effective coverage.

Shopping your Home Insurance rates every 3-4 years will make sure that you are always receiving the most up to date competitive rates. Give the professionals at Southern Insurance Group a call for your quote today. 352-243-9000 opt 1.