Without appropriate insurance protection, one accident is all it takes to end the American Dream of owning a home. A home is often the largest investment a person will ever make. It is quite obvious, as such, how important it is to obtain the right insurance coverage.
This coverage is designed to protect your home and all the personal possessions within from the consequences of loss-causing events and actions like fire, theft, vandalism and accidents. Arguably the most important aspect is that this kind of insurance can also help to protect your financial well-being should someone be injured on your property and sue.
Pretty much all who own a home will need home insurance and, certainly, if you have a loan the lender will mandate that you obtain it. If you try to avoid purchasing it, then the bank will simply take one out for you and add it to the cost of your mortgage. Guess what? Banks don’t like to waste money either.
Generally this policy coverage will extend to many natural disasters, but certainly not all. Almost everywhere one will have to purchase earthquake and flood coverage separately. Be sure to discuss with your insurance professional what natural disaster coverage is best suited for you and your family.
Insurance coverage is available at varying levels. Usually your state will require minimums for what your insurance company needs to provide in a policy. And your lender will likely have its own minimums as to how much coverage you must buy. In general, the more expensive your home the more you will likely pay in premiums.
Supplemental coverage is often available for your extra valuable items, such as exceptional jewelry or antiques. When purchasing a home insurance policy, your agent should want to know what, if any, valuables you might own.
In addition there is loss-of-use coverage that provides a payout up to an agreed upon amount for lodging and living expenses (within reason) during the time that your home is rendered uninhabitable due to repairs or rebuilding. However you slice it, whether it is common sense or a lending institution telling you so, obtaining homeowner insurance is really a no-brainer.