A home costs a lot of money. The initial payment is huge, and then there’s the upkeep. That’s why homeowners insurance is recommended for every home owner. Insurance helps you deal with home-related liability issues, property damage, and personal property damage. Basically, homeowners insurance helps you pay for those unexpected events that can cost tons of money.
Not every home insurance policy is the same. But they all offer some standard coverage, such as liability and property damage. Liability pays for things such as legal fees and medical expenses when someone is injured in your home. And as for property damage, you policy will state what’s excluded.
Read your policy so that you understand what’s included and excluded. You don’t want to file a claim only to learn it’s not something you can claim. Keep in mind that policies often require you to purchase some coverage separately. For instance, earthquake coverage and flood coverage aren’t included with homeowners insurance.
It also helps to get a deductible you can afford. If you’re unable to pay the deductible, then you can’t move forward with the claim. Commonly, the deductible is one to two percent of the home’s replacement value. If that’s too much, then you can possibly pay a higher premium to lower your deductible. In any case, homeowners insurance is worth the expense. Speak with an insurer to learn more about your options.