Homeowners insurance is one of the most basic essentials you need to buy if you own your home, but it can also be one of the more confusing types of insurance you can purchase. Whether you’re planning on purchasing homeowners insurance or just want to learn more about what exactly it covers, this guide will help walk you through everything from understanding your coverage and shopping for an insurance plan to understanding your legal obligations and filing a claim if disaster strikes.
Homeowners insurance protects your home against damage or loss due to fire, theft, or natural disasters. It also covers you if someone gets hurt on your property, whether you’re liable or not.
An effective homeowners insurance policy will pay to rebuild your home and replace your belongings if they are damaged or destroyed by fire, wind, or another natural disaster, such as flooding or earthquakes. It will also provide financial protection against liability claims and medical payments associated with injuries to people on your property and damage to their property.
What Does Homeowners Insurance Cover?
Homeowners insurance that provides coverage for your home and other structures on your property, as well as its contents. Your personal possessions—from your iPhone to jewelry—are also covered by a homeowners policy. This policy also covers liability if someone is injured or their property is damaged while on your premises. For example, if a neighbour slips in ice you hadn’t cleared from in front of your house, you could be held liable for any injuries they suffer.
Why Do I Need Homeowners Insurance?
There are several reasons why you need homeowners insurance. First, if someone was injured on your property or you accidentally damaged someone else’s home, your homeowner’s insurance would protect you financially. Second, it will cover any damage that might occur from a natural disaster, such as a tornado or flood. Third, some homeowner policies also include liability coverage that would protect you in cases of lawsuits.
Who Offers Homeowners Insurance?
There are numerous insurance companies offering homeowners’ insurance. They include Liberty Mutual, GEICO, Nationwide, Farmers Insurance Group of Companies (Farmers), Travelers, Allstate Corporation (Allstate), State Farm Mutual Automobile Insurance Company (State Farm), USAA, Progressive Corporation (Progressive), The Hanover Insurance Group of Companies (The Hanover) and many others.
Where Can I Buy Homeowners Insurance?
The first step is to contact a broker or agent that sells homeowners insurance. Do your research, until you find a good deal for your particular situation. Once you have a few quotes from different brokers or agents, you can decide whether it’s best for you to buy directly from an insurance company or through an independent broker/agent. You can also ask your friends and family if they have any recommendations for good homeowners insurance agencies.