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What is Homeowner’s Insurance?

Home owners insurance is on the smartest things you can do to protect your family. It is very important insurance that will help you and your loved ones during accidents and disasters that harm your home. Most home owners insurance policies will cover your property for damages that are caused by a storm, tornado, hurricane or fire. Ultimately you need to decide what you would like to have covered and the specific amount.

What can be covered?

Personal possessions such as jewelry, clothing, and other assets can be added to the policy as the “contents” of the house by filing a home insurance “rider”. Riders are extra policies added to a home insurance policy to cover additional items. Normally jewelry and other assets qualify for a rider, however some natural disasters could need one depending on the area where you live.

A general rule of thumb is that your personal property insurance should be around 30% of your dwelling or home owner’s insurance. If you have expensive items, you should do a full inventory of your possessions and make a list of everything that you own including any boats or recreational vehicles that aren’t covered by any type of insurance. After you completed the list you should estimate their value and possibly have it appraised. Some people also take photographs or videotape each item so that there won’t be any misunderstandings with the insurance company when you file a claim later. Properly documenting the value of your items and how much money it would take to replace them also helps you make sure you will not be underinsured when you are trying to find the right insurance amount for your valuables.

If you decide to buy liability coverage, this will protect you if someone (or their personal property) is harmed or damaged while they are on your property. This can be a smart option to add to your policy, especially if you have pets. If your property has a shed or storage area, then obtaining additional dwelling coverage can be beneficial.

Lastly, loss of use coverage is insurance that covers your family in case your home is made unlivable due to a natural disaster or man-made catastrophe. This insurance will cover any rent or expenses that you would pay out of pocket while staying in a hotel and repairing your home.

How to Compare Rates

If you decide to buy liability coverage, this will protect you if someone (or their personal property) is harmed or damaged while they are on your property. This can be a smart option to add to your policy, especially if you have pets. If your property has a shed or storage area, then obtaining additional dwelling coverage can be beneficial.

Lastly, loss of use coverage is insurance that covers your family in case your home is made unlivable due to a natural disaster or man-made catastrophe. This insurance will cover any rent or expenses that you would pay out of pocket while staying in a hotel and repairing your home.

How to Compare Rates

Comparing home insurance plans is highly recommended since it can help guide you picking out the right one for your family. Not all plans will cover every type of risk. Some people find it beneficial to learn about the different home insurance plans that have a partnership with their mortgage company. You may be able to get a discounted rate. Talk with a professional to determine the amount of coverage that you would need and make sure to go over additional costs, such as how much it would be to remove any property that was severely damaged.

When comparing rates for different homeowners insurance, research the company’s reputation. Do they have a good rating with the Better Business Bureau or have any complaints on file? Sometimes the best way to find a good insurance company is through referrals from friends and family members.

You should research the subject thoroughly and talk insurance agents before making a decision. Your plan should provide the most coverage at an amount that you can financially afford each month. With the right coverage you will be able to rest peacefully knowing that your home is fully protected if a disaster occurs.