Home-owners insurance is a form of insurance for your property, in the event of damage or loss done to your house. For example, if you are robbed, and the cause is covered in your home owners insurance policy, it will help cover the costs and replace anything that is missing.
Sometimes home owner insurance also works to keep you protected if anyone is injured while in your home.
Home owner insurance covers many different aspects, like:
1. Property Damage: If your house is damaged from something like lightning, home owner insurance will cover the cost for repair of the damage done to any part of your home, be it the shed, or the fence, or even the actual house. However, disasters like earthquakes or floods are not included in this policy.
2. Personal Property Loss: Home owner insurance also covers replacement costs of your personal possessions in the event of a theft in your home.
3. Personal Liability: Home owner insurance not only protects your property and possessions, but also you and your family. If someone is injured while on your property, and are prepared to sue you and make you legally responsible for the injury, the insurance usually can be used to protect you. However, it will not work if the injuries are found to have been caused intentionally.
4. Loss of Use: If for some reason, your house cannot be used for a certain period of time, due to repairs being done or anything else, home owner insurance will cover the costs for an alternate place of residence for that time duration.
Before you get home owner insurance, or consider getting it, you should be aware of all the facts.
For example, it does not cover every type of damage caused to your property. Only accidental damages are covered by the policy. So, if the damage is something like a broken pipe, which has been causing internal damage for a long period of time, and you have neglected it, then the costs of repair is on you.
Other events that are not covered by the insurance policy are some specific natural disasters, like floods and earthquakes.
Another fact to be aware of, is that home owner insurance is a very tricky business. You can be denied claims very easily, if there is a breach in your policy. One thing that the insurance companies are very on point about is home maintenance. You must keep your home in proper up keep, from trimming the trees, to fixing loose nails, because if your house is too vulnerable to damage, they will most likely take that as a reason to deny you a claim.
Home owner insurance is a smart option to consider, if you own your own property, or plan too, as it protects you and your property from many unexpected situations, like a fire, or burglary. It definitely proves to be a smart financial move, if you can afford it at the time.
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