Homeowners Insurance

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					?What is Homeowners Insurance?

Homeowners Insurance provides you with the coverage in case of a disaster. In the
event of a disaster your homeowners insurance will provide you with financial
protection. A homeowners insurance policy insures the home in which you live along
with the possessions you keep in it.

Home Insurance is a Package Policy

Homeowners insurance is purchased in a package policy. A package policy means that
it covers both damage to your property and your liability or legal responsibility for
any injuries and property damage you or a member of your household cause to other
people. Homeowners insurance also covers damage caused by household pets.

A homeowner's insurance policy covers most disasters, however there are some
exceptions such as floods, earthquakes and poor maintenance (Also known as wear
and tear). If you want coverage for floods or earthquakes, you will have to purchase
separate policies. However, maintenance related problems are the homeowner's
responsibility to take care of. In fact, keeping up with the maintenance of your home
will help to reduce the likelihood of a loss in the future. A good example of this is the
replacement of a roof that is showing signs of wear.

Overall it is very important to have homeowners insurance coverage that suits your
specific needs. You never know when a loss is going to occur and you are going to
need the money to fix it. Take Hurricane Katrina for example; there were many of
people that were without homes because they didn't have flood insurance. That is why
it is very important that you get the proper coverage.

Remember that standard homeowner's policies do not cover flooding so you will have
to purchase that separate through your homeowner's insurance agent. Discuss all of
the possible exposures with your agent, broker, or insurance company.

Replacement Cost

Replacement cost coverage is available for the structure of your home; This allows
you to repair the home to the state that it was before the damage took place. Actual
cash value coverage is replacement cost less depreciation. The older your possessions
are, the less you will recover from the homeowners insurance company.

Renters Insurance

Not only is insurance coverage available for homeowners it is also available for the
people who rent apartments or houses. If you rent a house and you have a renters
insurance policy, you will be covered in the event of a loss. The coverage for a renter
is relatively inexpensive and will cover your property, your liability, and loss of use of
the home due to a covered loss.

Coverage Types

The standard homeowner's insurance policy includes four different types of coverage.
1) The coverage for the structure of your home is offered by the homeowner's
insurance company. This means that they will repair or rebuild your home in the event
of a covered loss.
2) The coverage for your personal belongings that you have in your home is also
covered by the homeowner's insurance company. This means in the event of a claim
that is covered by your insurance policy, your personal belongings will be able to be
replaced. Note: It is a good idea to carry replacement cost coverage for your contents.
This way, your items are not depreciated if there is a loss. With replacement cost
coverage, your property can be replaced with items of like kind and quality.
3) Liability protection covers you in case of a law suit against bodily injury or
property damage that you are your family members caused to another party.
4) Additional living expenses if you are temporarily unable to live in your home
because of an insured disaster.

There can be more to a home insurance policy and there are limitations for certain
types of property. It is best to discuss these options with a representative at the time
your are applying for coverage.

Robert co-founded Insurance4USA.com, an insurance quote shopping service, in
1999. He has been a licensed insurance agent in New York State since 1990.