Quite simply, homeowners insurance provides protection for you in case there is damage to your home or your home is involved in a liability claim. While the basic principle of homeowners insurance is straight forward, there are many different types of policies, levels of coverage and properties that can be protected under homeowners insurance.
Is There a Need for it?
If your home is not paid for, then you have no choice but to get homeowners insurance. The lender who holds the mortgage on your home will require you to have homeowners insurance in order to protect them in the event there is damage done to the property.
Regardless of the lender’s requirement, it is very important to have homeowners insurance to protect your home. Your home is probably your biggest investment as well as your biggest monthly expense. No other property is more important to protect from damage due fire, flood, wind, vandalism or any other sort of damage that could come to your home. Major damage to your home could cost significantly more than you can afford to pay out of your pocket.
Types of Policies
A homeowners insurance policy is designed to protect the property you call home. It does not have to be a traditional house to be considered a home. Homeowners insurance will cover your home if it is a:
- Beach home
- Brick home
- Mobile home
- Modular home
- Second home
- Stick-built home
Of course, different types of homes will have different policy requirements and different homeowners insurance premiums. A homeowners insurance policy will protect not only the property from specific damages but will generally also have a liability aspect as well. This means, though it will be specific to the actual policy, that you may be covered in case of some of the following:
- Damage to guests’ property caused by you
- Injury to guests caused by you
- Damage to guests’ property caused by your guests
- Injury to guests caused by your guests
- Damage to guests’ property caused by your pets
- Injury to guests caused by your pets
What to Look for
When it comes to picking your homeowners insurance policy, there are several things to consider. You have to understand the environment in which you live. For example, is your property located in an area in which hurricanes or earthquakes are common? If so, you will need to tailor your homeowners insurance policy to that issue.
Here are some of the things to consider when choosing the right homeowners insurance necessary for you.
- Earthquake insurance
- Flood insurance
- Hail Insurance
- Wind Insurance
Your lender will generally have requirements for the homeowners insurance policy depending upon the property’s location, they can also help by giving your guidelines concerning the extent of the coverage you may need.
Where to Find Homeowners Insurance
There are many homeowners insurance companies out there that can give you the type of protection for your property that you need. The competition for your business is fierce, which is good for you. It is now easier than ever to compare these companies by using the internet to gather homeowners insurance rate quotes.
You can use our free homeowners insurance quote finder tool to help gather as many homeowners insurance quotes as possible. There are few better ways to save money and it can be done in a matter of minutes.