The importance of homeowners insurance cannot be underestimated. You might think that it's a lot to pay out for something you'll never use, but how do you know that you won't ever use it? You don't know what tomorrow will bring. You aren't in control of the ferocity and direction of the next winter storm or which house a desperate burglar will target next. Insurance gives you that coverage to pay for damages and losses, making things easier in those worst-case situations. You will hope never to need it, but be glad it's there when you do. Here are some of the ways homeowners insurance can help you.
The Essentials Of Homeowners Insurance
Fire
The first one is probably the one that comes to mind when thinking about the benefits of homeowners insurance. House fires can be devastating in their destruction and end up costing families a lot of money. There aren't just the costs involved in repairing any damage to the property but also in replacing any possessions lost in the fire. There's also the deep emotional trauma to deal with, which doesn't need financial stress on top of it. Your insurance can help cover some of the costs in an accidental fire, and you can read the fine print to learn more.
Flood
It's a similar situation with flooding and other "acts of god". Floods are some of the more common reasons for claims because they aren't just weather-related. You could end up in floodwater after a storm, or you could end up with water in your home from a plumbing leak or burst pipe. Other weather-related clauses include protection after wind or structural damage after a severe weather event. For example, a tree falling onto the property or damage to the roof. Homeowner protection provides greater peace of mind for those living on the coast, where winter storms are more frequent.
Theft
Then, there's protection against theft. The money awarded and the ability to even make a claim all depend on the details in your plan and the value of the item. Insurance companies should be able to tell you how much you can claim for certain types of items, such as valuable possessions and jewelry. This payout won't cover the sentimental value of these items, but it can help. Also, it's worthwhile looking into additional protection for extremely valuable pieces, such as fine art and collectibles, which brings us to our next point.
Other Add-Ons For Homeowners Insurance
Not all home insurance coverage comes as standard. That's why it's so important to compare options and see exactly what companies have to offer. You can start by comparing the basic coverage and how much you will pay for the factors listed above. Are there any concerns or caveats after reading the fine print, and are you getting a good deal? From there, you can look at the additional coverage that may be provided through add-ons. Add-ons are a way for companies to offer a more comprehensive package at a higher cost. You get to choose which additional factors you want added to your plan to make it better suited to your needs. Here are a few examples you might want.
Accidental Damage
Many of the clauses in a homeowners insurance agreement relate to accidents caused by other people or so-called "acts of god". But what if the accident was your fault? What happens if you have an expensive item of furniture or a prized possession that gets damaged by you, your children, or an overexcited pet? The common assumption is that if you break it, you pay for it, and that brand-new 60'' television is coming out of your paycheck. However, it's worth looking to see if there are protections in your insurance plan to cover these sorts of issues.
Legal Expenses
This one isn't necessarily there as an add-on because some companies will make this part of their plan. However, if it isn't clearly defined, you can ask about it and see if there is an add-on available. All of the situations so far relate to incidents with direct financial hardship due to accidents and loss and where insurance can cover that. However, there may be times when incidents aren't sorted out that easily, and you may be caught up in a legal battle. Many companies offer liability protection, and you can click here to learn more about that. Still, you may need additional help. For example, you might get some money to cover items lost in a robbery or from a flood, but what if concerns about the liability in that situation lead to a court case?
Identity Theft
This final add-on is one you might not expect to see at all with homeowners insurance because it doesn't have a lot to do with your home and its content. However, some home insurance providers are including this as an additional perk to get people to sign up for a plan. Some even go as far as making it part of the starting plan with no add-on costs. Either way, it's worth having in case the worst happens. Identity theft, either through stolen cards or stolen mail, can turn lives upside down and be difficult to come back from. Some financial help goes a long way.
Get Homeowners Insurance That Works For You
It pays to take your time to research different plans and see what works for you. See what's covered and what isn't by looking at the different types of accidents and losses the company pays out for. Get a better idea of their limits when it comes to financial help and if any other restrictions make them unsuitable for your home. The best providers will make it clear what they can and can't cover before you sign up. You can also speak with an agent to discuss your options and any concerns about the cost. The right plan is out there. Just make sure it has the essential coverage and add-ons you need.
