The What, Why and How of Homeowners Insurance
Years ago you made one of the biggest purchases of your life: you bought a home. Ever since you’ve been making mortgage payments, funding remodel projects, budgeting everyday upkeep and much more. You’ve transformed a typical house into a cherished home and created likely the single biggest investment of your life.
So what happens when a fire destroys everything you worked so hard to build?
Tomorrow you’re taking a huge leap in life: you’re buying your first house. You’ve saved for years, talked to the bank, pulled funds and you’re finally making a dream come true. Goodbye rental agreements, hello home investment.
But right after you settle in, your home and your belongings are demolished by a tornado. What now?
The answer to both of these questions lies in one often overlooked solution: homeowners insurance.
Homeowners Insurance protects this valuable investment you’ve worked so hard to obtain and can be your saving grace if and when disaster strikes. Read the what, why and how of homeowners insurance below to make sure you and your home are properly protected.
What is homeowners insurance?
Homeowners insurance is a concise, comprehensive policy that was initially created to cover a home, its contents and liability. Though this type of insurance can come in various forms and sizes, the typical package policy covers property insurance and personal liability.
What does homeowners insurance cover?
Structure – Homeowners insurance normally covers any damage caused to the structure of your home due to disasters like fires, tornados and more. Insuring your home for 100 percent of it’s worth insures that you will be adequately funded in the event of a total loss of your home.
Basic policies tend to cover all major disasters with the exception of flood, earthquake, war or nuclear accident. It also covers other damaged property structures like a garage or shed.
Contents – Basic policies also cover the cost of replacing personal belongings in the event of a disaster or theft. Standard coverage is typically 50 percent of the structure’s worth (i.e. if your home is worth $300,000 then your personal belongings will be insured up to $150,000).
Consider taking inventory of the items in your home like furniture, electronics, clothing, appliance and more. This along with photos of your belongings will make filing insurance claims much easier in the event of total loss.
Liability – Standard policies cover three types of liability: other’s property, personal liability and medical expenses suffered by others. If you happen to break a neighbors window, homeowners insurance can cover it. Perhaps you are being sued for an injury that occurred on your property plus medical expenses; homeowners insurance has you covered.
Why is homeowners insurance important?
Aside from providing you with financial security in the event of the destruction of your home and its contents, homeowners insurance is vital when protecting your personal liabilities as a homeowner. Furthermore, if your house was to be damaged in any way, or if your personal belongings were stolen, a homeowner’s insurance policy can help you replace these items and restart your life.
How can you get homeowners insurance?
Getting quality homeowners insurance is simple. At Taylor Moore Insurance you can rest easy knowing your home is protected from theft, fire, property loss and so much more. Call Taylor Moore Insurance today to get your free quote and to learn more about why having homeowners insurance is smart and responsible.