Home Owners Insurance

What Is Home Owners Insurance?

Home Owners Insurance is insurance that protects a homeowner against financial loss resulting from damage to or destruction of the insured home. Home owners insurance also covers personal property possessions and provides compensation for liability claims, medical expenses, and other claims that result from property damage and personal injury suffered by others. Most lenders will require that you purchase homeowners insurance before funding your loan.

Liability & Casualty Insurance Coverages

Now that you know the definition of home owners insurance, you can look at the many options that are available and choose which is the best for you and your home. Most home owners insurance policies provide a combination of liability and casualty insurance coverages. Liability insurance coverage provides payment in the event that someone is injured or dies while on your property or in the event someone in your household does something for which you may be liable within the parameters of the policy. It may also cover damage to someone else’s property within your control or damage caused to someone else’s property as the result of your property. It provides coverage in case you are sued for one of these same reasons up to the amount of your coverage.

Casualty insurance coverage provides payment in the event your property is harmed or destroyed as a result of covered acts. Most home owners insurance policies provide coverage for losses to your home, garage, and other buildings on your property and their contents as the result of fire; most natural disasters like tornado, hail, or wind damage; theft; burglary; vandalism; and other losses. This coverage is broad and provides protection in the event of many potential perils. However, it does not cover anything and everything that could go wrong. It is important to ask about exclusions to your policy to be sure you clearly understand the limits of the coverage you are purchasing before you have a claim and find out something isn’t covered.

*Other exclusions frequently include earthquake, war, and nuclear accident which may or may not be applicable possibilities in your area. The important thing is to check your policy, read the fine print, and know what is and is not covered.

Categories