What does Homeowners Insurance cover, and why do we need it?
When purchasing a home we have homeowners insurance. Knowing our standard insurance policy and how it works is essential when the home's structure, personal belongings, and liability protection is compromised from a disaster.
When purchasing homeowners insurance understand what is covered during fire, water damage, hail, lightning, hurricanes, strong winds and other disasters. Many times a policy will not cover what you might think is covered so it’s important to ask your insurance salesperson what is covered and what is not. It’s best practice to buy more coverage to ensure the rebuild is covered. Ask if water damage is covered, most times a second insurance policy is needed such as “flood insurance policy”.
Structure Repair is when the home has been damaged by fire, and natural disasters and normally doesn't cover flooding or wear and tear. This is why it’s important to ask questions and get more coverage for peace of mind. Don’t focus on what the home was bought for when buying an insurance policy; it’s best to buy more than less to ensure affordability for future cost to rebuild.
Homeowners Insurance Umbrella Coverage has it’s limits and “liability insurance” is something many fail to ask about. What if a person is walking down your sidewalk in front of your home and falls or trips and gets hurt, did you know you’re responsible. Guest visiting your home could accidentally slip or be bitten or scratched by a pet and you’re liable.
No fault medical coverage is a must so if someone is injured they can submit medical bills directly to the insurance company.
Personal belongings is only covered by a percentage of the home's value and homeowner can do a complete inventory of their clothes, jewelry, and other personal items by taking photos and keeping receipts to store in a bank or vault.
What does Homeowners Insurance cover, and why do we need it? Knowing if the total loss of our home tomorrow the homeowners insurance policy would pay enough to build the exact same house in the same spot.
I hope this will help you understand the importance of why homeowners need Homeowner insurance to cover structural, personal, liability and additional insurance to cover living expenses.
What does homeowners insurance cover and why to we need it? is brought to you by Bob Ratliff, REALTOR® (512) 587-5689 www.MyAustinListings.com
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