Typically, a standard home insurance policy offers protection in the event that damages to the home or property occur. Not only is the home and property covered, but items within the house and other structures on the property are as well. If damage should happen or theft should occur, the home owner is reimbursed for repairs, replacement and time spent away from their home while reconstruction takes place.
Standard home insurance provides liability coverage that will cover the cost of accidents on the property. Whether a visitor acquires injury from a fall, dog bite or a heavy tree limb falling on a neighbor’s property causing damages, the cost for repairs are covered.
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Theft and vandalism are also covered under home insurance, as long as the house does not sit empty for more than 30 days. Other structures such as a tool shed, gazebo or pool are also covered up to 10% of the amount of insurance on the home. Consult with an insurance agent if more insurance is needed. There is some exclusion that home insurance does not cover such as floods, earthquakes, acts of war, and damaged vehicles are all not covered. If the home is being rented to another family their property can be covered by additional living expenses coverage.
Standard home insurance does not cover the cost of damages created by certain things. Policies are known as “riders” offer protection against disasters such as a flood or an earthquake. Policy riders can protect the equipment for people who run a business out of their home. Additional coverage is also designed to restore credit for an individual in the event of identity theft. A policy rider can also cover sewer or drain water back-up that a standard policy does not cover.
Without home insurance if a disaster should occur they will be responsible to replace, repair or reconstruct any damages that occur to their property. An insurance broker such as Body-Borneman can research the best home insurance policy for their customer. Utilizing an insurance broker is an effective way to go about selecting a policy. Generally, an insurance broker is paid by the companies they represent for the policies they sell, so consulting with an insurance broker comes at no cost.
Having an insurance policy on a home is not required by law unless it was a part of a loan agreement. Canceling home insurance significantly decreases monthly bills but if damages or accidents occur, an expensive bill can be the result. Perils such as fires, hail and lightning are all covered under a standard insurance policy. The likelihood of a disaster happening is more likely in a lifetime of owning a home than not. It is within the homeowner’s best interest to consult with an insurance agent to determine which policy is most suitable for their needs.