When talking about “what does homeowners insurance cover” The first thing that actually comes to mind is “What is homeowner insurance” and also “What does it cover”. One thing that you just need to know is that one of the requirements for mortgage lenders is that you actually need to provide homeowners insurance coverage.
Well, I will be expatiating more about this particular topic so that you can be able to grab a whole lot of information concerning the article. Also when you are reading you should just make sure that you don’t skip to avoid missing out on important details.
What Does Homeowners Insurance Cover
Understand that your home is more than just a roof in which you rest your head. Your home actually serves as a valuable asset and can also be used as collateral when acquiring a loan. This is even more of the reason why you just need to protect your home by finding a suitable homeowner insurance policy that can then protect your home as an investment.
But before you go into the coverage, you just need to know what homeowners insurance means.
What is homeowner insurance?
There are also lots of definitions of what homeowner insurance actually means. Actually, homeowner insurance is just an agreement of policy to then help cover the cost of expenses of repairing or replacing your home and belongings due to an unforeseen event or accident that is caused by threats like fire, theft, unfavorable weather, and much more.
Homeowners insurance is also an important factor in ensuring the safety of your home when an unforeseen event then takes place or happens. This helps you to just be able to rebuild your home with a new item and the expenses will now be covered by the insurance company.
Meaning, it can also help to just cover the cost of liability exposure, for instance, when someone gets injured on your property. Actually, the main work of homeowners insurance is to:
- Repair your home
- Repair or replace your personal belongings
- Pay for the cost of living somewhere else while your home is under repair.
- Coverage also includes personal liability.
However, based on required by law, you do not actually need homeowner insurance. But it is also very important when requiring a mortgage because most mortgage lenders do require homeowner insurance.
What Does Homeowners Insurance Cover?
Initially, the homeowners insurance policy also known as HO3 policy coverage simply includes your home and personal property. This policy will now help to cover the cost of repair if your home is affected by an unforeseen accident. Here is the following homeowners insurance coverage:
- Fire
- Windstorms
- Hail
- Lightning
- Vandalism
- Theft
- Heavy weather like the weight of ice, snow, or sleet
- Freezing of plumbing, heating, air conditioning, or others.
Generally, damage to homes as a result of floods or earthquakes is not included in the basic homeowner insurance policies. You can even try to opt-in with optional homeowner insurance coverages and also policies which might then include other cover damage.
What does homeowners insurance not cover?
Even the biggest home insurance policy does not include all coverage. There are just certain events homeowner insurance policies can also cover and there are some that homeowners insurance does not cover. This includes the following:
- Flooding
- Earthquakes, landslides, and sinkholes
- Nuclear hazard
- Government account such as war.
- Wear and tear or neglect
- Power failure, and more.
However, there are some other additional homeowner insurance coverage you can even purchase that includes flood insurance, earthquake insurance, and others.
Types of Homeowners Insurance
Generally, what makes up a homeowners insurance policy simply includes types of coverage, coverage limit, and also deductibles. There is the following type of home insurance coverage:
Dwelling coverage
With dwelling coverage, expenses for repairing or rebuilding your home are actually covered by the insurance company if it is damaged by a covered event.
Personal property coverage
Personal property coverage also helps to cover your personal items in your home caused by damage from unforeseen events. However, this simply covers items like furniture, clothes, sporting goods, and much more.
Loss of use coverage
Loss of use coverage is also another type of home insurance coverage that just covers the expense of the additional cost of living when you then move out of your home temporarily while your home is repaired.
Personal liability coverage
Personal liability coverage also helps to protect you by simply paying for the treatment of accidents done on your home. For instance, if someone then gets injured, with personal liability coverage, you can just pay for the treatment.
How much does homeowners insurance cost?
According to reports, the average cost of homeowner insurance is about $1,765 per year. But the price actually differs, meaning it can just be lower and also higher based on factors that include location and even the amount of coverage you want to buy. For most states, your credit score is even a determining factor for the cost of homeowner insurance.
Best Home Insurance Companies
- Progressive
- State Farm
- Allstate
- Geico
- Liberty Mutual
- Farmers Insurance
- Lemonade
- USAA
- American Family Insurance
- Amica Mutual Insurance
- Chubb Insurance
- Erie Insurance
- National Mutual Insurance
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