If you own a home, you need to buy insurance to cover your structure and personal belongings. Homeowner's insurance is the insurance product you need for this coverage. Home insurance provides the coverage you need and much more. If you need to buy a policy, you may need to know a few important things. Here are three vital things to know about home insurance as you prepare to buy a policy.
1. Why You Need Homeowner's Insurance
You need home insurance for several reasons. First, you only need it if you own a house. If you rent a home, you can buy renter's insurance instead of homeowner's insurance. If you have a home loan, your lender will require that you buy a plan, but you should buy home insurance even if you do not have a loan.
Homeowner's insurance provides several types of protection. First, it protects your home's structure. If your home incurs damage, your plan pays to make the necessary repairs. If your personal belongings get damaged or stolen, your plan also pays you for reimbursement of those things.
Secondly, it includes liability coverage, which protects you from lawsuits that arise from incidents at your home. If you do not have liability coverage at your home, someone could sue you if they get injured while visiting you. As a result, you might lose your house if the lawsuit results in a large settlement for the victim.
2. The Extra Coverages You Might Need
Home insurance provides a lot of important protection, but it does not cover every possible incident. For example, home insurance does not include flood coverage. If you suspect that your home might encounter damage from a flood, you should buy flood insurance right away. You can talk to your agent to learn more about adding extra coverage for things that your policy does not include.
3. Questions to Ask When Buying a Policy
When you get ready to buy home insurance, you might want to ask the agent a few questions. First, you might want to ask what perils the policy covers. Secondly, you can ask about your options with deductibles. Finally, you can talk about the method the company uses to calculate claims.
As you read this information, you might better understand what home insurance is and how to buy a policy. If you would like a quote, contact a homeowner's insurance company today.