Since owning a home represent a large outlay, you need to protect that investment. What happens if your home is suppose your home is damaged by the elements? That’s where home owners insurance comes in, to protect you from unpredictable losses.
The first step when buying insurance is to READ YOUR POLICY . It is the agreement between you (the insured) and your insurance company. The time to learn about your coverage and conditions is not after the tree falls on your roof, but before when you can discuss the policy with your insurance agent.
If you do not understand the policy or want to modify it, contact the insurance agent or company for additional information. The written application for insurance usually becomes part of the policy so pay attention when filling it ou, making sure it’s accurate and complete.
Insurance policies are sold either on a monoline basis or as a package policy. A monoline policy contains only one type of coverage, such as liability insurance, while a package policy includes several different types of coverage, such as property insurance and liability insurance. A package policy is generally less expensive than insurance coverages purchased separately.
Homeowners policies, which ever new home buyer must have at settlement, are package policies that include property, liability, injury to someone on your property due to your negligence or that of a member of your family; or somebody else's property is damaged as a result of your negligence.
Know the different situations that you are insured against. It is up to you to determine whether you need the most extensive type of coverage or whether your insurance needs can be met with a basic policy. Some coverages excluded under a policy, such as earthquake damage and power interruption, can be "bought back" for an additional premium. Likewise, some coverages listed under a policy can be excluded, such as offpremises theft, resulting in a reduction in premium. However, some coverages, such as flood insurance, are always excluded and the only way to obtain them is through Federal insurance programs.
For more detailed information, be sure to contact a reputable insurance agent or sales representative.