Homeowners insurance facts

The primary reason for home insurance is the protection of your assets. Basically the standard homeowners’ policy covers you against 16 named perils which include fire, theft, vandalism, windstorm, explosion, volcanic eruption, and riots. It covers for damage caused by smoke, damage by aircraft or vehicle, falling objects, short circuit damage caused by electrical appliances and others. Getting adequate information on what your insurance covers is advised for every landlord and evn renters alike. This will help you get and maintain adequate coverage for your home and valuables.

It is discovered that there are misconception about home insurance .Lots of people hold conflicting views about its limitations and coverage. To correct the misconceptions, here are answers to some frequently asked questions about your insurance.

Is your home insurance policy unlimited?

No it is not. Your policy does not cover for everything. There are different classes of home insurance, none is without exclusions.

Does your home insurance cover you for flood?

No it does not. It covers only for disasters such as fire, lightning, hurricane and wind related damages. To be protected from flooding you need separate special flood insurance. It’s available through National Flood Insurance Program. Ask you insurer to help you purchase that if you need it.

Does your insurance cover your medical expenses when you are injured?

No. The medical aspect of your insurance is meant to protect visitors to your home. If your visitor gets injured in your home, the insurer will take care of his medical bill. It does not extend to you and your household. To be protected medically, purchase an individual or family health insurance.

Is the valuation of your valuables important in your home insurance?

Yes it is.

Taking inventory of your household goods and personal items is of great value. It helps you to determine how much your home is worth. It enables you get adequate coverage and pay accurate premium at all times. It also helps you get adequate compensation when you go for claim as a result of loss or damage.

Does your insurance cover for damages caused by lack of maintenance?

No. You are responsible for the maintenance of your home. The company is not liable for any negligence or carelessness.

Does your home insurance reimburse the full cost of your asses on event of loss or damage?

This depends on the coverage you bought. You can insure your home by the actual cash value or the replacement cost value.

If your policy stipulates actual cash value, the insurance company pays the cost to replace your belongings minus depreciation. With a replacement cost policy, you are reimbursed for the total cost to replace your loss.

How do you protect yourself from earthquake?

As it is with flood, earthquake requires separate insurance. Earthquake insurance is avialable through private insurance companies. If you live in California, you can get it through the California Earthquake Authority. You may inquire from your insurer to assist you with all the special insurance you need.

These are answers to clear you and give you more understanding about your policy.

I guess you’ve gained a lot from this information.