Home Insurance And What You Stand To Benefit [2022]

Home Insurance And What You Stand To Benefit [2022]

What is home insurance and what you stand to benefit from home insurance, this and many more points regarding home insurance, we will be discussing in this article.

Homeowners insurance is a form of property insurance that covers losses and damages to an individual’s residence, along with furnishings and other assets in the home.

Homeowners insurance also provides liability coverage against accidents in the home or on the property.

Homeowners insurance is a form of property insurance that covers losses and damages to an individual’s house and assets in the home.

The policy usually covers interior damage, exterior damage, loss or damage of personal assets, and injury that arises while on the property.

Every homeowners insurance policy has a liability limit, which determines the amount of coverage the insured has should an unfortunate incident occur.
Homeowners insurance should not be confused with a home warranty or with mortgage insurance.

Keep reading this article to know more on home insurance and what you stand to benefit from it.

Understanding Homeowners Insurance
We are going to start up this article on home insurance and what you stand to benefit from it by helping first understand what homeowners insurance is.

A homeowners insurance policy usually covers four kinds of incidents on the insured property: interior damage, exterior damage, loss or damage of personal assets/belongings, and injury that occurs while on the property.

When a claim is made on any of these incidents, the homeowner will be required to pay a deductible, which in effect is the out-of-pocket costs for the insured.

For example, say a claim is made to an insurer for interior water damage that has occurred in a home. The cost to bring the property back to liveable conditions is estimated by a claims adjuster to be $10,000. If the claim is approved, the homeowner is informed of the amount of their deductible, say $4,000, according to the policy agreement entered into.

The insurance company will issue a payment of the excess cost, in this case, $6,000. The higher the deductible on an insurance contract, the lower the monthly or annual premium on a homeowners insurance policy.

Every homeowners insurance policy has a liability limit, which determines the amount of coverage the insured has should an unfortunate incident occur.
The standard limits are usually set at $100,000, but the policyholder can opt for a higher limit.

In the event that a claim is made, the liability limit stipulates the percentage of the coverage amount that would go toward replacing or repairing damage to the property structures, personal belongings, and costs to live somewhere else while the property is worked on.
Acts of war or acts of God such as earthquakes or floods are typically excluded from standard homeowners insurance policies.

A homeowner who lives in an area prone to these natural disasters may need to get special coverage to insure their property from floods or earthquakes. However, most basic homeowners insurance policies cover events like hurricanes and tornadoes.

Homeowners Insurance vs. Mortgage Insurance

A homeowners insurance policy also differs from mortgage insurance.

Mortgage insurance is typically required by the bank or mortgage company for homebuyers making a down payment of less than 20% of the cost of the property.

The Federal Home Administration also requires it of those taking out an FHA loan. It’s an extra fee that can be figured into the regular mortgage payments, or be a lump sum charged when the mortgage is issued.

Mortgage insurance covers the lender for taking on the extra risk of a home buyer who doesn’t meet the usual mortgage requirements.

If the buyer should default on payments, the mortgage insurance would compensate. Basically, while both deal with residences, homeowners insurance protects the homeowner and mortgage insurance protects the mortgage lender.

Top 5 Benefits Of Homeowners Insurance

Know that you know what home insurance is, let’s know discuss what you stand to benefit from home insurance.

Owning your own home is a wonderful thing, but if you’re like most people, you probably haven’t thought much about homeowners insurance. But once you consider the many practical benefits that a homeowners policy can bring you, there’s a good chance you’ll be thinking about it more often and even getting excited about it.

Here are the top 5 benefits that a solid homeowners insurance policy can bring to you:

  • Protection Of Your Main Dwelling

The main reason for home insurance policies is to protect your main dwelling, that part of your home where you actually live. Imagine dealing with a total loss due to a house fire or extensive (and expensive) damage due to a hurricane or tornado.

You should ideally insure your home at 100% of its value, but at least 80% to 90% is pretty standard. Minor damage, major damage, and total replacement costs will be covered by most policies.

  • Protect Your Detached Structures

The second most important component of homeowners insurance is coverage for your detached structures, which may include a garage, sheds, fences, the dog house, and more.

Normally, detached structures are covered at up to 10% (or some other percentage) of the coverage limit for your main dwelling. But you can customize your policy if you want additional coverage for detached structures on your property.

  • Coverage For Your Home’s Contents

Whenever you get home insurance, you need to take inventory of all the appliances, furniture, electronics, and other personal property inside of your home that would be covered by the policy.

If a covered event (like a storm) damages or destroys some of this property, you can be reimbursed in part or in whole, depending on your policy’s specific stipulations. This is a major benefit of this kind of insurance that is often overlooked by homeowners.

  • Liability Coverage

This is one of the reasons you really can’t afford to be without homeowners insurance. It could cost tens of thousands of dollars or more in medical bills should someone be injured on your premises, and there is the possibility that you could be held liable.

Your policy will not cover you or household residents’ injuries or property damage. It is designed to protect you from expensive lawsuits that could arise from, say, a dog bite injury to a visitor.

  • Loss Of Use Insurance

Should you be forced out of your home while it is being repaired or rebuilt following a covered event, you will incur hotel, food, and travel expenses.

These will be covered up to a point by your home policy’s loss of use component. This is yet another benefit of insuring your home it does much more than just repair damaged shingles.
For more information on what is included in homeowners insurance in Florida and how it works, contact Flagler County Insurance Agency today. We can help you make an informed decision and customize a policy for you that will both meet your needs and fit your budget.

CONCLUSION

Finally, getting to the end of this article you now know what is home insurance and what you stand to benefit from it. Hope we were able to help you understand all there is to know about home insurance and it’s importance.

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