What is Covered Under My Home Insurance?

Standard Homeowners Insurance – What Policy Do I Need?

Having home insurance is a necessity currently. It is important to understand what you are getting before making a large purchase like homeowners’ insurance. It is common for different carriers to offer different plans depending on states and certain provisions. Now knowing, most policies are pretty similar minus a few details here and there. Home insurance is probably the most common insurance plan out there since you no longer need to be a homeowner to qualify. In fact, it is common for landlords to require renters to get their own insurance plan. Since home insurance can be for homeowners and renters, it is important to know what you can expect from your coverage. The most common are damages, rental coverage and liability coverage.

Damages

There are many different damages that can happen to your house, so it is important to know what is plan is protecting. In most policies, damages to both the interior and exterior caused by fire, wind, lightning, and vandalism will be covered. However, damages from earthquakes, bad maintenance and floods are not. It is important to read the fine print and understand what is at the hands of the insurance and what will fall on you. Most damages covered by insurance will replace furniture, appliances, and clothing. It is also important to know what your plan is protecting especially if you have separate structures on your property. For the most part, if you have a garage, shed, or anything separate from your main structure, that will require separate insurance.

Rental Coverage

Rental coverage is definitely something to consider in an event your home is unlivable. If you are not able to live in your home while fixes are being made, hotel or house rental coverage comes in handy. Insurance policies call this additional living expenses that can be added to your plan. Depending on where you would like to stay depends on your premium since there are limits on your spending. If you want to stay in a 5-star hotel, your premium for rental coverage will naturally be higher. Rental coverage may come at a price but it is something to consider that provides you and your family peace of mind.

Liability Coverage

According to some studies, liability insurance should be at least $300K worth of coverage. This is suggested because your liability coverage will protect you from having to pay out of pocket. Liability coverage protects your home from damages caused by you or your family members. This even includes your pets. For example, if your dog were to bite a delivery man and the victim were to sue for damages, your liability coverage will protect you from having to pay for it yourself. Liability is just another policy to consider when shopping for home insurance. .

The Levels of Coverage

You already know by now that not all insurance policies are equal. Several factors are considered when it comes to your new coverage. Most insurance plans have levels of coverage. These levels run from HO-1 through HO-8. These levels are naturally dependent on the need of the homeowner. There are three different types of values when determining your level of insurance. They are: Guaranteed, Actual and Replacement.

Guaranteed Value

Guaranteed value policies will usually have the highest premiums, but this is because of the top of the line coverage. It comes with an inflation-protected policy that will cover the entire cost of rebuilding, regardless of the cost is more than the actual policy limit. Since this plan covers everything, it is one to consider if you plan to stay at your residence for long periods of time.

Actual Value

Actual value policies consider inflation and depreciation of your possessions. Meaning the insurance company will consider what is damaged at the time of the disaster. Actual Value is quite literal in terms of you will get paid for your possessions. Insurance companies will determine the value and pay you accordingly.

Replacement Value

Replacement value is the opposite of actual value. It goes by what the item is originally worth, regardless of what you paid for it. This includes inflation and depreciation. With replacement value, you will be able to rebuild the house to its original specifications.

When to Buy Homeowners Insurance

Most people purchase insurance when they purchase anything of high value and can be seen as an investment. Getting homeowners or renters insurance is required in most places. However, do not hesitate to shop around and find one that suits your needs and budget. Read the fine print and ask as many questions as you can, before signing on. Do your research with FindQualityInsurance.com and connect with the best carriers around. Shop for the best price and receive multiple quotes when using our easy to use tools.