Purchasing a house is not only a major decision, but also a major investment. For most people, the home is the largest asset in their investment portfolio.
Homeowners Insurance is for any person who owns a home and wants the security and peace of mind of knowing the house and property is protected. Additionally, many mortgage companies only offer mortgages with the requirement that the home and property is protected from loss by insurance.
Homeowners Insurance is a type of property insurance that provides a safety net in case the property is damaged. The insurance covers the home, any attached buildings and other structures on the property. This insurance can also provide protection for personal property in case of theft and provide personal liability protection for accidents or injuries that occur on the property.
The three basic types of home insurance available to chose between are HO-1, HO-2 and HO-3. HO-1 and HO-2 have a lower cost because these insurance products cover only the property. HO-3 is an insurance product that offers property protection, protection for belongings and liability protection. Often HO-3 will offer a loss of use benefit if the home is not available to live in due to damage. Another option that an HO-3 policy may have is the option of replacement value instead of cost value.
In the event of a theft or property damage, the first step of accessing the protection offered by the insurance is by filing a claim. Filing a claim notifies the insurance company of the loss. The insurance company will send out an insurance adjuster to help confirm the extent and value of the loss. One way to ensure that the process is smooth and accurate is to take pictures of the property and belongings prior to the event. The value of the property can be negotiated to find the most accurate value.
Purchasing home insurance protects the large investment made in the property and provides funds for rebuilding and repairing in the case of an accident or damages. This insurance also helps provide a sense of peace and security with the knowledge that the property and the investment is kept safe and protected.