Affordable Homeowners Insurance

Your home is likely your largest and most expensive asset so it makes sense that you want to protect it in every way you can by buying affordable homeowners insurance.  Understanding the difference between home owners insurance and mortgage insurance can be confusing for those who are first time home buyers.

Many home buyers think that home owners insurance covers the structure of their home and nothing else. This is not the case. In most instances, home owners insurance also provides a certain level of protection to the homeowner(s) and anyone else who is named on the insurance policy.

In general, most homeowners insurance policies offer three types of insurance protection. These include structure, personal property and liability. Let us take a brief look at all three elements of a home owners insurance policy.

Structures of a Home

A home owners insurance policy will protect a home in the event of damages due to a fire, as well as lightning, smoke, theft and extreme types of weather such as flooding or wind damage. The only instance where the home owner would not be covered would be if it was included as one of the exclusions under the policy.

Keep coverage amounts in mind when you apply for home owners insurance. In other words, bear in mind that you want to protect your home in its entirety and not just your equity or the amount that remains owing on the mortgage.

Personal Property

Homeowners insurance can also cover personal property and your family’s possessions. Most policies are set up in such a way that if someone breaks into your home and steals your personal property, you will be reimbursed for the cost of the items. The same can be same if your property is damaged in any way.

When it comes to personal property and your homeowners insurance policy, you are encouraged to take inventory of everything you own.  Go room to room and write up a list. Include on the list the dates when you bought items and how much they cost. It also helps to jot down serial numbers where applicable. This is especially important when it comes to your furniture, collectibles, jewelery and household appliances. Keep the list in a fireproof safe or somewhere other than your home such as in your desk at work.

Liability

When it comes to homeowners insurance, compensation is possible in terms of liability claims, medical expenses and other claims that have to do with personal injury and property damage that were caused by another party. The liability coverage that is a part of a homeowners insurance policy covers accidents that take place either on the property of the policyholder but also while he or she is away.