When you take out a home loan to purchase a house, you'll almost certainly be required to purchase a homeowners insurance policy to protect it against fire damage and other perils. Unlike auto insurance, it is not required by law, but your lender will probably make it a condition of the loan that you protect their interest in the property with adequate coverage. Because of that, it makes considerable sense for you to know what a homeowners insurance policy typically covers. The sections below discuss three of the most important types of coverage and how they benefit you.
3 Important Things Homeowners Insurance Covers
1. The Structure of Your Home
If the structure of your home is damaged or destroyed by fire, storms, vandalism, or other named perils, your insurance company pays to have it repaired. It is important that you insure the dwelling for the full amount of its replacement cost and not just the outstanding mortgage value. Otherwise, if disaster should strike, you could find yourself without a home and without the resources to replace it.
2. The Contents of Your House
You should typically insure the contents of your house for between 50% and 70% of the value of its replacement cost. This protects you against losses if any of the named disasters in the policy occur, as well as if you suffer a break-in or theft. Coverage extends to furniture, clothing, electronics, and other personal belongings.
Homeowners insurance also protects you against liability if someone should suffer injury or property damage on your premises through your negligence. For instance, if someone should slip on your icy front stoop or suffer a bite from your dog, your liability insurance coverage will pay the cost of treatment. Liability insurance also pays the legal costs to defend a lawsuit arising out of such an incident.
If you seek quality home, farm, auto, or business insurance and want to learn more about your options, contact Nationwide Insurance: Jan Parisi Agency in Spencerport, NY. They'll sit down with you and explain exactly what's available and help you design a policy that fits your needs and your budget. To visit in person, check out their Facebook page to view a map and business hours, or call (585) 349-3592 to speak to a friendly, knowledgeable agent.