Buying a home is one of the most decisions you make in your life - whether it is a first home or one of many. Probably the next most important decision after purchasing a home is the time of homeowner's insurance you buy in order to ensure that your home is protected. Homeowner's insurance is pretty self-explanatory. It is protection for your home, compensating you for losses in or outside of your home in the event you suffer financial losses due to a fire, robbery or an injury by someone who happens to be on your property.
There are many different types of home insurance offered by many different companies. Choosing the right home insurance policy is important and it is up to you to find the type of coverage that will give you the most protection for the money you spend. In general, a standard policy will protect the physical structure of your home and other structures like a garage or barn on your property. It will also cover any personal property and valuable located within your home like furniture and appliances. In addition, a good policy should also cover your liability of legal responsibilities in the event any injuries and property damage occur to you or your family members cause to others while on your property, as well as additional living expenses should you need to leave your home temporarily while repairs are in progress.
There are also options that can be added for additional fees that include coverage for replacement of valuable like jewelry and electronics like computer equipment. You can also pay more for higher liability for property damage or bodily injury limits.
It is almost always mandatory for all homeowners that hold a mortgage to have homeowner insurance coverage. The mortgage holder has an investment in your home, as they will own it if you cannot pay the mortgage.
The best way to decide on homeowners insurance is to consider the value of your home and property as well as its contents. In most cases, there are three options to choose from when purchasing homeowner's insurance. An Actual Cash Value policy will pay for the cost to replace damaged property and factor in depreciations amounts. A Replacement Cost policy reimburses for the cost to replace any damaged property without deductions for depreciation, but is limited to a certain maximum amount. A Guaranteed Replacement Cost policy will pay full cost of replacing damaged property with no deduction and no dollar limitation. This policy is not available in every state and is usually limited to 120 percent of the total cost should your home need to be rebuilt.
ABOUT THE AUTHOR:
Richard sells real estate in the San Gabriel Valley which is about 12 miles South of Los Angeles. For more information, visit his website at http://www.westsangabrielvalleyrealestate.com
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