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What is it?
As its name suggests, homeowner's insurance protects you if your
home is damaged or destroyed. In addition, it covers your family's
possessions and can provide you with compensation for liability claims,
medical expenses, and other amounts that result from property damage
and personal injury suffered by others. By paying insurance premiums,
and satisfying the other requirements of your insurance company,
you can protect yourself in the event of loss due to unforeseen and/or
catastrophic events. You still won't be able to predict when lightning
will strike your house, but you will sleep better at night knowing
that homeowner's insurance can save you from financial ruin if such
an event happens.
Why do you need it?
You may need homeowner's insurance because your mortgage lender
requires it. But, even if you own your home outright, you still need
homeowner's insurance to protect that which you can't afford to lose.
It is really that simple. You spend years building up a solid financial
foundation for you and your family. All that hard work can go down the
drain in a matter of minutes when, for example, a tornado devastates
your house, a burglar robs and vandalizes your home while you're gone,
your dog bites and severely injures a neighborhood child, a guest
in your home is hospitalized after falling on your icy stairs, or a
neighbor sues you for personal injury after your chimney topples
over on his head. There are virtually thousands of possible scenarios
that could result in severe financial loss or even the loss of your home.
Homeowner's insurance is designed to help prevent that result.
(Renters and owners of condominiums and cooperatives can get coverage
using variations of the same basic insurance tailored to their needs).
What do you need to know?
Homeowner's insurance protects more than just the owner of the house.
Generally, it protects anyone named on the policy, your spouse,
residents of the home (other than renters), household employees,
guests and visitors.
The property insurance section of your homeowner's policy protects more
than just your actual home or dwelling. In most cases, your insurance
company should reimburse you for damage or theft affecting your dwelling,
any structures attached to the dwelling, structures on your premises that
are not attached to the dwelling, personal property, loss of use of your
dwelling, and liability if you or another insured are found responsible
for personal injury or property damage to another.
There are wide variety of damages, conditions, and costs that are not
covered by homeowner's insurance. Here are just a few examples of situations
that are not covered by a homeowner's insurance policy: the land underneath
your home is damaged, your claim exceeds your maximum stated coverage amount,
you have flood damage, you have losses related to business activities
in your home, your liability results from injuries suffered by a tenant,
your claim is covered by other insurance, or your claim was caused by
someone else who is insured under your party.
Your homeowner's policy may exclude coverage that you can purchase
by adding an endorsement to your policy. Other coverage, such as flood
insurance, has to be purchased under a separate insurance program. Still
other coverage can be obtained by purchasing a policy that covers a broader
list of perils. The cost of homeowner's insurance will depend upon the
amount of your coverage, any endorsements you add to the policy, and the
deductibles you choose.
How do I get it?
Homeowner's insurance is not available to groups. Policies are written
individually, typically at the time you purchase the home or at the time
you take out a mortgage on the home. You can contact any homeowner's
insurance professional for information and quotes
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