Why Homeowner’s Insurance?
Assets: Your home is your biggest asset because you have money invested in it and you have your personal belongings in your home. You want to protect it from fire, theft, vandalism, and other perils.
Liability: When you own a home, you can legally be liable for injury or property damage to others. Liability coverage would pay for any expense related to injury or property damage to others. For example someone falling off on your sidewalk and this person sues you on the grounds that he fell, because sidewalk was not kept clean. This liability coverage also applies outside of your property. Example is where your son accidentally hits an elderly lady with your shopping cart and she breaks her leg. The lady could sue you for the injury.
Bank: If you have mortgage on your home, bank will require you to carry home insurance. All or some of your property is owned by the bank and they too want to protect their assets and liabilities.
Your basic home insurance covers losses resulting from fire, wind, air, vandalism, and theft. If you need coverage for earthquake, flood, landslide, expensive jewelries, you will need to get separate coverage or have supplemental coverage.
What Can I Do to Keep My Home Insurable? (Good Housekeeping)
Don’t let moss form on the roof and make sure your home is in good shape.
Do not plant shrubs, trees, or bushes next to the house, where the leaves start touching the house. If you have trees touching the house, remove it.
Keep your yards clean both the front and the back.
It would be good idea to keep record of your personal property. Take pictures and keep it safe.
Types of Home Coverage
Dwelling: The cost to replace the house.
Separate structure: Is any small storage shed located on your property
Liability: It pays for any damage you caused to others (accidental)
Medical: Pays for emergency medical fee, when quest is injured at your home
Personal property: Most of your personal belongings at your home
Loss of use: Pays for expenses related to not being able to stay at your home. Example house was on fire and you stayed at a hotel.