When your dream of owning a home becomes a reality, so does the need for purchasing homeowners insurance. Lenders normally require individuals to carry a home insurance policy for the life of their mortgage, and it usually makes great sense for homeowners to continue to insure their home and quite possibly the largest investment they will ever make even after their loan ends.
Homeowner's insurance generally covers structural or incidental damage to the home or its surrounding property. Determining the appropriate kind of coverage is an important step in disaster preparedness. Should such an event occur, it is incumbent upon the insured to contact the provider and to file a claim. Usually this must happen within a designated amount of time. An investigator will come and look into the event to itemize and estimate the losses to determine the appropriate next steps to take in order to obtain compensation for losses.
Considerations such as the value of the home and property, climatic zones, any prior claims, even whether there is a dog in the family, can have an impact on the premiums and the benefits of a policy. Normal coverage should include the home, personal items and any other structures that might be on the property. Wind damage, property damage due to car accidents, vandalism and even volcanic eruptions can also be typically included.
For many homeowners, it is essential to have an insurance policy that covers structural damage. It is important to keep in mind that, in most cases, structural damage due to earthquakes or flood damage may not be covered by a usual homeowner policy. If you are buying in an area where there are frequent examples of flooding, earthquakes, storms, etc., then including a rider, (an additional piece of policy coverage), can make a great deal of sense.
Deductibles are important in determining your premiums. The deductible that you will pay if there is damage is an important consideration to most homeowners. Simply put, the higher the deductible the lower the premium.
Your home is a major investment, quite possibly the biggest by far you will ever make. It’s the place that keeps your family safe. Make sure it’s protected by calling one of our professionals today for more information. Having peace of mind in an otherwise stressful situation and protecting your financial future is priceless.
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