Homeowners insurance provides peace of mind by ensuring that your home and your valuables inside of it are protected in the event of damage or disaster. Choosing the right policy can be complicated, and policies can vary depending on the type of residence, the number of occupants, and value of your possessions. The following is a helpful guide on what you need to know about the homeowners insurance.

What Is Homeowners Insurance?

Standard policies cover any damage that occurs in or around your home. Typically, coverage will also extend to injuries that occur on your property, including any injuries to hired contractors. This coverage will pay for medical expenses and any other incidental charges accrued as a result of the accident.

How Does It Work?

A typical policy is an agreement between a homeowner and insurance carrier. Each month or year, the homeowner pays a premium to the carrier to maintain coverage. Should damage occur, the homeowner pays a specific deductible to cover the repair or replacement expenses. The deductible is an out-of-pocket cost that generally ranges from $500 to $1,000. Once this amount is paid, the insurance provider pays for any remaining costs. 

What is Policy Coverage?

What’s Covered?

Coverage will vary with each homeowners insurance policy. However, a typical plan extends protection to the home’s interior and exterior, including garages, fences, sheds, decks and in some cases, swimming pools. Damage caused by storms, hail, wind, fire, theft, and vandalism is covered. The policy also covers the property owner’s possessions. If their items are damaged, lost, or stolen, they can submit a claim to have them replaced or receive their cash or actual market value. Homeowners also have liability protection, which pays for a guest’s medical expenses if they are injured while on the premises. 

What’s Not Covered?

The two most common perils not covered by homeowners insurance are floods and earthquakes. Separate policies must be obtained for each of these natural disasters. Depending on the plan, damages caused by sinkholes, mold, and termites may also not be covered. Be sure to check with your insurance agent about these policies if you live in areas that are prone to floods, earthquakes, or other natural disasters.

Farmers Mutual Insurance Association in Sibley, IA, has provided customized and affordable coverage to homeowners since 1889. Serving Osceola, Sioux, and Clay counties, the independent agency can do the shopping for clients from some of the industry’s leading carriers. The goal is always 100% complete satisfaction and reliable coverage. To receive a free, no-obligation homeowners insurance quote, call (712) 754-3654. You can also go online for extensive information about other policy options.