The primary goal of any type of insurance is to prevent financial devastation after a loss. You pay a relatively small fee in exchange for a guarantee that you will not have to bear the burden in the event of a future loss.
Imagine that you own your home free and clear, but you do not have a homeowners insurance policy in place. As long as keep paying property taxes, you are guaranteed the right by law to enjoy your home as you see fit. You can live in the home yourself, rent it out to tenants, sell it to someone else or let it remain vacant.
However, if a giant tree from the back yard happens to fall on the home and cause severe damage, it is your responsibility to pay for all the expenses related to the repairs of the house. This is one of the main reasons that everyone who owns a home should carry property home insurance. When something like this happens, you will be able to rest assured that the damages will be paid for by your insurance company and your finances will remain in good standing.
Who Needs Homeowners Insurance?
There are many homeowners out there who may be negligent in the responsibility to carry home insurance on their property. Fortunately, this type of coverage is typically required either by law or by a mortgage contract.
Even in areas where full coverage is not required, liability coverage is often a requirement. Liability home insurance will pay the cost to repair or replace the property of others, as well as medical bills and financial restitution.
Often times when you purchase the required liability insurance, you will be given the opportunity to also purchase property insurance. This will save you from financial hardship in the event of a disaster.
Home Insurance Coverage Explained
Recent studies have found that many homeowners have immensely ill-advised views of what is actually covered by their home insurance policy. Approximately one-third of homeowners think that a standard policy will cover damages caused by flooding. More than half of those questioned think that their standard homeowners insurance policy will pay for damages incurred from a water line break. Some believe that they will be compensated for earthquake damage while others believe their home insurance policy covers mold.
For this reason, it is important to obtain your home insurance policy from a company that you can trust to fill you in on all of the details of your policy. Not only will your Risman Insurance Agency representative help you decide on the exact coverage types and amounts to protect your home, but will also take the time to explain all of the coverage details so that you understand the protection that you purchase.
Some causes of property destruction that are typically not covered by a standard home insurance policy include:
- Acts of war
- Property disrepair, such as out of date plumbing, worn out electrical wiring, unmaintained roofing, etc.
In most cases, a home insurance policy will be written in a way to reflect that covered events are either accidental or sudden. This means that damage caused by a slow leak over a number of months will not be covered. However, if the roof caves in suddenly and water from a massive rain storm damages your new hardwood floors, then you should be covered.
The most common perils that should be covered by your homeowners insurance policy include:
- Wind, such as from a hurricane or tornado
In addition to covering the structure of your home and your other property, home insurance policies also include liability insurance. While you may be a very careful individual and you do not think that you need such coverage, there are several eager legal professionals out there searching for ways to press lawsuits against people just like you.
If your neighbor’s house were to catch on fire due to your unattended grill, you will be responsible for the cost of the damages. The same rule applies if someone is injured while on your property and requires medical attention. Risman Insurance Agency will help you choose the best liability coverage to include in your home insurance policy to make certain that you will be protected from all instances where you could be required to pay for medical bills, property damage or lawsuits.
At Risman Insurance Agency, we believe that it is vital that you understand what your homeowners insurance policy does and does not cover. We will take the time to make sure that you are getting all of the coverage that you need at the best possible rate. In addition, we will also take the time to explain all of the minor details of your policy with you to make certain that you understand your coverage plan.
Do not wait until it is too late and you stand to lose your home and everything in it. Act now by clicking on the quote request button for your risk free home insurance quote today.