It may be one of those topics that bore the heck out of you, but homeowners insurance is essential! It’s smart to understand the basics, at the very least. It could save you thousands.
Mortgage lenders require insurance coverage to protect their investment, which is your home. If something happens to your home, the real owners – and in most cases, the bank – would suffer a huge monetary loss. Here’s a few important basics you should know about and be aware of when it comes to purchasing home insurance.
What a Homeowners’ Policy Provides. The elements of a standard homeowners’ insurance policy provide that the insurer will cover costs related to:
- Damage to the interior or exterior of your house – In the event of damage due to fire, hurricanes, lightning, vandalism or other covered disasters, your insurer will compensate you so that your house can be repaired or even completely rebuilt.
- Loss or damage to your personal belongings – Clothing, furniture, appliances and most of the other contents of your home are covered if they’re destroyed in an insured disaster. You can even get “off-premises” coverage, so you could file a claim for lost jewelry, for example – no matter where you lost it.
- Personal liability for damage or injuries caused by you or your family – This clause even includes your pets! You’ll be protected if someone had been injured on the premises of your home or property. According to the Insurance Information Institution, it is recommend to have at least $300,000 worth of coverage.
- Hotel or house rental while your home is being rebuilt or repaired – This portion of homeowners’ coverage would reimburse you for the cost of rent, hotel, restaurant meals and other incidentals if you are unable to live in your house while its being repaired.
How Much Does It Cost? The price is determined by how much coverage you buy, a decision you can only make after evaluating the market value of your house, completing a household inventory, and deciding how much liability protection you want. No matter what price you’re quoted, you’ll want to do some comparison shopping.
Selecting an Insurance Company. Make sure you are going with a provider that is legitimate and creditworthy. Consider asking relatives, friends and coworkers for referrals. It always makes sense to benefit from the experiences of others.
If you need any assistance or recommendations, ask your Realtor or contact us at Charles Rutenberg and we will help! Call us at 516-575-7500 or email us at information@crrli.com.
[facebook][retweet]
- What Can Homebuyers Expect After COVID-19? - May 1, 2020
- Homebuilder Confidence Index Craters Due to Coronavirus Impact - April 22, 2020
- Fed Issues Emergency Interest Rate Drop to Counter Coronavirus Effect - March 10, 2020
