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What is Home Insurance?
Home insurance provides financial protection against disasters. A standard policy insures the home itself and the things you keep in it.
Damage caused by most disasters is covered but there are exceptions. The most significant are damage caused by wind/hail, fire and theft. Maintenance-related problems are the homeowners' responsibility.
Why do you need Home Insurance?
It is really all about protecting yourself financially if something unexpected happens to your home or possessions. That's important because chances are your home is likely one of your largest investments.
- If your home was destroyed by fire or damaged by a natural disaster, you'd need money to repair or replace it.
- If you are a victim of theft and vandalism, it can reimburse you for your loss or pay for repairs.
- If you are still paying for your home, your lender will require insurance.
It is important to know that home insurance is meant to cover unexpected damage, not routine maintenance. Ask your agent to talk about what is covered and be sure to read your policy so you know exactly what's included and what is not.
Things to consider and questions to ask your agent
Here are few things to discuss with your agent that will influence your decisions.
- How much will it cost to rebuild my house and replace my belongings if they are damaged or destroyed? (Ask your agent to talk you through your home's features and the things you own so you can make an informed decision about coverage.)
- Does the insurance company have a good reputation for customer service? Is it known for paying claims fairly and promptly?
- What's the process for filing and settling a claim? (Ask who to call and what happens after you file a claim.)
Because everyone's needs are not the same, it is best to consult your agent to help assess your needs and find the insurance policy that is right for you.
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