What Is Homeowners Insurance

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(No Transcript)
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What Is Homeowners Insurance?
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Homeowners Insurance Basics

• Homeowners insurance provides protection for your
  home and the things in it, such as furniture,
  appliances, and electronic devices. Its an
  essential part of homeownership that protects you
  from disasters that could result in significant
  losses or even total loss of your home.
  Homeowners insurance will help pay to rebuild
  your home if its damaged by events like fire,
  windstorm, or theft.

If youre a homeowner, you likely have homeowners
insurance. But how well do you know your
homeowners insurance policy? Before you make a
claim, its good to understand what your
homeowners insurance policy covers and what it
doesnt.
Here are some home insurance basics
Your homeowners insurance will typically cover
damage from fire or smoke. Theft of personal
property.
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The Different Types of Home Insurance

• Damage from falling objects.
• Natural disasters such as windstorms or
  earthquakes.
• Vandalism.
• Medical expenses resulting from an injury on
  your property that wasnt caused by a family
  member.
• Sewer backup or overflow if it occurs in a part
  of your house not covered by flood insurance (if
  you Have flood coverage).
• Mold remediation if mold is discovered in parts
  of your house not covered by flood insurance (if
  you have flood coverage).
• Damage due to freezing pipes.
• Your homeowners policy will also cover liability
  for any injuries sustained on your property that
  isnt covered by other policies, such as medical
  payments for someone who trips over an uneven
  sidewalk or is bitten by one of your pets.

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Getting Your Home Insured

• You may not realize it, but there are a few
  different types of home insurance. The two main
  forms of homeowners insurance are named-peril and
  all-risk.
• Named-peril is relatively inexpensive and covers
  you for specific disasters, such as fire or hail
  damage.
• All-risk insurance protects you against all
  possible perils (acts of God, man, or nature) for
  a higher price. If a company offers only one type
  of coverage, find out what perils arent covered
  before you sign up depending on your location,
  flood coverage may be an extra expense to
  consider paying for when buying home insurance.

You can apply for a homeowners insurance policy
as soon as you purchase your home, but it usually
doesnt kick in until after youve moved in. Many
homeowners wait to insure their homes until a
major purchase, like furniture or jewelry, is
stolen or destroyed during that time (which
generally lasts about three months), youre only
covered by your homeowners policy for damage
from floods and earthquakes.
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How Much Do You Need?

• You should have enough coverage that you can
  rebuild your home if it were destroyed experts
  recommend at least 10 times what it would cost to
  rebuild. It may also be wise to look into
  flood-insurance policies if your area is
  particularly prone to flooding, buying both
  policies could offer extra peace of mind.

Most homeowners policies cover fire, wind,
vandalism, and theftthe big disasters. But many
perils go unnoticed until its too late. Make
sure you know what is (and isnt) covered so you
dont have to worry if an accident happens while
your home is unoccupied. Dont forget coverage
for common things like medical payments and
liability in case someone gets hurt on your
property or you get sued because of an accident
there. When figuring out how much insurance to
buy, consider how much it would cost to replace
everything in your home with new items of similar
quality not necessarily brand-new stuff but,
say, comparable furniture from a secondhand store
or vintage clothing.
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The Costs of Not Having Homeowners Insurance

• In many parts of America, homeowners insurance is
  a requirement before you can even purchase a
  home. While its possible to opt out, as long as
  you have some sort of plan in place (such as
  renters insurance), there are a lot of costs
  associated with not having a homeowners
  insurance. For example, if your home is destroyed
  by fire or another natural disaster, not having a
  homeowners insurance could result in tens of
  thousands of dollars in repair and rebuilding
  costs for which you are personally responsible.
  In addition to covering financial losses
  resulting from accidents like these, some
  homeowners policies include coverage for
  vandalism and other malicious events.

Understanding the Coverage of Your Policy
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These include

• Just as every homeowner is different, so is every
  homeowners insurance policy. There are several
  coverages and options you can choose from when it
  comes to homeowners insurance.

Personal property coverage. Liability
coverage. Additional living expenses
(ALE). Its important to understand how each of
these works before deciding on a homeowners
insurance policy that fits your needs.
Here are some things you should know about each
type of coverage
(A) Personal Property Coverage This covers your
belongings in case they get damaged or stolen. It
includes items such as furniture, clothing,
electronics, and jewelry. You can also purchase
coverage for collectibles, valuables, and other
items that arent typically covered by a
homeowners policy.
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How to Save Money on Your Premiums When Updating
Your Policy

• (B) Liability Coverage This protects you from
  legal liability if someone is injured on your
  property or suffers property damage due to an
  accident caused by something that happens on your
  property.
• (C) Additional Living Expenses (ALE) If youre
  unable to live in your home due to a covered
  losssuch as fire, windstorm, or burglarythis
  will pay for temporary housing expenses while
  repairs are being made to your home.

Rates vary widely depending on where you live and
what kind of policy youre looking for. If your
home is worth more than 250,000, insurers view
it as a high-risk property and will charge you
more. However, you can use your equity to lower
premiums by taking out an insurance policy on a
second property. If that isnt an option, another
way to reduce premiums is by increasing your
deductible from 1,000 to 5,000 or higher.
Youll pay out of pocket for smaller incidents
(such as breakage) but save on premium costs in
return.
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Don't Forget About Flood and Earthquake Coverage.

• The majority of homeowners insurance policies do
  not cover floods and earthquakes. Only 15 of all
  homeowners policies provide flood coverage and 4
  cover earthquakes. Even if you live in an area
  that isnt prone to flooding or earthquake
  activity, its still important to know whether
  your policy will provide any coverage for these
  types of disasters. You never know when a tragedy
  could occur, so its best to be prepared ahead of
  time by ensuring you have adequate coverage.
  Flood and earthquake coverage are available as
  additional riders on most insurance policies at a
  very reasonable cost.
• If youre interested in learning more about flood
  and earthquake coverage, contact your Pamphile
  Insurance Brokerage, LLC today.

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Contact Us

• Address 70 East Sunrise Highway Suite 500 Valley
  Stream, New York 11581
• Email wpamph_at_gmail.com
• Phone [phone]
• Website https//wpinsurances.com/
• Blog https//wpinsurances.com/what-is-homeowners-
  insurance/