A Quick Guide to Homeowners’ Insurance

A Quick Guide to Homeowners’ Insurance

Many people don’t stop to think about what they are purchasing when they pick a homeowners’ policy; they simply pay the premium and keep going. That can lead to confusion or disappointment ti you even need to file a claim. Use this quick guide to understand homeowners insurance basics so you get the right coverage.

What Is Covered

In general, most policies will pay to replace or repair your home if it is damaged by theft, vandalism, some types of severe weather, or fire. This is done through two basic policy aspects. 

  • Personal property: This is your stuff (i.e. furniture, collectibles, electronics, clothing, etc.). 
  • Liability: If someone is hurt on your property, this will protect you against claims and help cover medical costs.

What Is Not Covered

While a basic policy may be good for an average homeowner, there are some exceptions. Keep in mind that most policies do not provide coverage for damage due to natural disasters, such as flooding and earthquakes, or replacement of excessive customizations or historic features 

Deductibles and Limits

Just like with other types of insurance, you can adjust coverage limits and deductibles to customize your policy. It’s a good idea to set limits high enough to cover the full replacement of a structure and personal belongings. Keep deductibles at an amount you are comfortable paying if you have to file a claim.

Homeowners’ insurance doesn’t have to be confusing. Take time to review your policy to ensure it offers the coverage you need.