Published on November 11th, 2013 | by admin
Understanding Property Insurance
Taking out a property insurance policy can be confusing for first-timers. Insurance agents are there to help, but many are hesitant to talk with one for fear of being upsold or having an obligation. Fortunately, online homeowners insurance quotes are easily accessible through a number of insurance companies. Before pursuing a home owners insurance quote, however, it’s important to make sure you understand home insurance reasonably well. The home homeowners insurance industry is worth an incredible $70 billion USD, and a property insurance policy is required by most lenders before you close on a home.
What a Property Insurance Policy Provides
- Damage to the interior or exterior of your house. In the event of damage from a fire, hurricane, lightning, vandalism, or another covered disaster, your insurer will compensate you so that your house can be repaired or rebuilt. Damage from floods, earthquakes, and poor home maintenance is usually not covered. Those in flood-prone areas are recommended to obtain separate riders, as floods can cause thousands of dollars worth of water damage. Flash floods are often caused by snow melt, hurricanes, and winter storms, so those living in regions prone to such disasters might consider coverage. From 2003 to 2012, flood insurance claims averaged $3 billion a year.
- Loss of or damage to personal belongings. Clothing, furniture, appliances, and most other contents of your home are covered if they are destroyed in an insured disaster. Off premises coverage can also be purchased so that possessions are covered even if they are lost or damaged away from home.
- Personal liability for damage or injuries caused by you, your family, or your pets. This includes damage and injuries caused off your property.
- Hotel or house rental while your home is being rebuilt or repaired. A property insurance policy will include coverage for your rental of another home in the event that your home is uninhabitable during covered repairs. It also may reimburse restaurant meals and other incidental costs incurred while your home is uninhabitable.
Purchasing a property insurance policy that works for you is about striking the right balance of coverage and cost. Consider what you really need before purchasing an excessive plan. When in doubt, talk with an insurance agent who can help you determine what’s reasonable.