Homeowners Insurance Policy
Homeowners insurance is a type of property insurance that can offer financial protection to the homeowner against damages to the house itself and to personal possessions on the premises. It can also provide liability coverage against injuries that occur on the property.
What Homeowners Insurance Covers
The two basic components of a homeowners insurance policy are property protection and liability protection. The policy is intended to cover certain costs associated with each so that the homeowner doesn’t face unreasonable expenses in the case of a disaster.
Homeowners insurance can offer financial coverage, up to the policy limit, for damages caused by covered situations that happen to both permanent structures on the insured’s property and to personal property. In the case that you have something valuable that you wish to insure, a specific rider can be added to your policy.
Covered situations can vary by policy, but generally include fire, theft, vandalism, wind and hail. In most cases, flood, earthquake, and damages from poor maintenance and general wear and tear are excluded from homeowners insurance policies. You can purchase separate policies that cover some excluded situations, like flood or earthquake, if you live in a high risk area.
In the case that another person is injured on the premises, homeowners insurance can cover costs related to the injury, including medical bills, legal fees and any settlement that may be awarded, up to the limit of the policy.
You can also choose to add an umbrella policy, or an excess liability policy. This can offer you more insurance after you reach the limit of your homeowners insurance policy. Your umbrella policy can also provide coverage against things like invasion of privacy, libel or slander.
Considerations for Homeowners Insurance Coverage
When choosing your homeowners insurance policy, you can consider choosing between replacement cost and actual cash value policies. In the case that you need to make a claim with your insurance policy, each will offer you a different payout.
- Actual Cash Value – This plan will offer you the cash equivalent to current value of your property, accounting for depreciation. This means that if you own a television from 1984, you won’t receive the same payout as if you own a flat screen from 2011.
- Replacement Cost – This policy would offer you the money to purchase new versions of the items on your insured policy. In this case, regardless of how old your television is, you will receive compensation to purchase a brand new one.
How to Get Started
Your home is one of your largest investments, and it’s important to protect it. The insurance professionals at Fusco & Orsini can help you find the policy that is best for you. Request a free quote.