Are You Covered? A Homeowner’s Insurance Guide
Are You Covered? A Homeowner’s Insurance Guide
NO one wants to think about disasters. Severe weather, fire, theft – or even a seemingly small issue like a broken pipe – can wreak havoc on your home and result in thousands of dollars in damages. Fortunately, a good home insurance policy covers your home – as well as the belongings in it – in case disaster strikes. While terms vary, most policies also help to protect you from liability if someone outside your household becomes injured on your property. And that liability coverage is often extend to include damage you (or anyone living in your household) may do to someone else’s property.
Homeowners Insurance Covers Things Like:
- Structure
- Roof
- Windows
- Furniture/Personal Belongings •
- Liability for Non-Residents Injured on Property •
- Liability for Damage or Injury Caused by You or Your Pets
Home Warranties
Some homeowners choose to supplement their insurance coverage by purchasing a home warranty, which covers many of the systems and appliances in your home that are NOT covered by homeowners insurance. While policy terms and coverage vary, a home warranty will often cover the electrical, plumbing and some appliances that fail due to age or typical wear and tear. Unlike homeowners insurance, home warranties aren’t required by mortgage companies. But many homeowners like the added financial protection and peace of mind that home warranties provide.
A Home Warranty Covers Things Like:
- HVAC
- Electrical
- Major Appliances
- Plumbing
Most Standard Policies DON’T Cover:
- Malfunctioning Systems & Appliances
- Floods or Earthquakes
- Slow Leaks
- Power Failures
- Neglect or Aging
- Faulty Repairs
Minimize Risk, Maximize Value
Now that you understand the basics of homeowners
insurance, you should be ready to start shopping for a policy
that best fits your needs and budget. Your goal should be to
minimize your risk while maximizing the value your policy
provides. While you never want to leave yourself without a
safety net, you also don’t want to overpay for insurance you
don’t need (and will hopefully rarely use). Aim to strike a
balance that will provide you with adequate protection at an
affordable price.
Once you’ve purchased your policy, avoid setting the annual
renewal on autopilot. Instead, take some time to consider
factors that have changed over the past year. Home
improvements, a shift in market conditions, a new
home-based business, or even growth in your overall net
worth could mean it’s time to reassess your coverage.
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