Homeowners Insurance

Homeowners insurance exists primarily because a home is often one of the largest purchases people make in their lifetimes. Naturally, you want to protect the value of your  property.  Homeowners insurance is a contract between a homeowner and an insurance company. As long as the homeowner pays the required premiums and meets the other policy requirements, the insurance company guarantees to reimburse you for any losses incurred due to natural disasters or othe types of damage less any deductible amount that is agreed to in your policy.

What Does It Cover?

A basic homeowner’s insurance policy will protect you against any property damage that results from things like fire, lightning, wind or hail storms. It will also provide for hotel and food costs if you are forced to leave your home while such damages are repaired. A typical policy, however, does not cover flood or earthquake damage. Because these threats are usually specific to certain regions of the country and can cause extreme damage, they can be purchased as separate policies. If you live in a flood zone or near an earthquake fault line you may be required by your mortgage company to carry this coverage. A basic policy will also cover against loss from theft or vandalism as well as reimbursement for personal property destroyed in natural disasters. Policies can provide liability coverage for lawsuits brought against the owner by people who were injured on the property. This includes the cost of legal defense up to the allowed policy limit. Additionally, most policies will have a provision that will cover the basic medical expenses for the parties.

Is It Required?

Homeowners insurance is almost universally required by lenders when you purchase a home. This is due to the lender using the asset as collateral to secure the loan. The lender wants to be certain the collateral for the loan is never compromised by a catastophic loss such as a fire, tornado, etc. If you own your home and have no debt against it, it is still the best way to protect the value of your home in the face of the unexpected.

To learn more contact Hilton Realtors at (417) 882-9936,