What is homeowners insurance?
What is in a standard homeowners insurance quotes policy?
Are there different types of policies?
What type of insurance do I need for a co-op
or condo?
What type of disasters are covered?
Can I own a home without a homeowners insurance quotes policy?
How do I take a home inventory and why?
How much homeowners insurance do I need?
What is homeowners insurance?
Homeowners insurance provides financial protection against
disasters. A standard homeowners insurance quotes policy insures the home itself and the
things you keep in it.
Homeowners insurance is a package policy. This means that
it covers both damage to your property and your liability
or legal responsibility for any injuries and property damage
you or members of your family cause to other people. This
includes damage caused by household pets.
Damage caused by most disasters is covered but there are
exceptions. The most significant are damage caused by floods,
earthquakes, and poor maintenance. You must buy two separate
homeowners insurance quote policies for flood and earthquake coverage. Maintenance-related
problems are the homeowners' responsibility.
What is in a standard homeowners insurance
policy?
Generally, speaking a standard homeowners insurance quote policy
includes four essential types of coverage. They include:
- Coverage for the structure of your home.
- Coverage for your personal belongings.
- Liability protection.
- Additional living expenses in the event you are temporarily
unable to live in your home because of a fire or other insured
disaster.
Are there different types of homeowners insurance quote policies?
Yes. A person who owns his or her home would have a different
policy from someone who rents. Policies also differ on the
amount of insurance coverage provided.
The different types of homeowners insurance quote policies are fairly standard
throughout the country. However, individual states and companies
may offer policies that are slightly different or go by other
names such as “standard” or “deluxe”. The one exception is
the state of Texas,
where policies vary somewhat from policies in other states.
What type of insurance do I need for a co-op
or condo?
If you have purchased a condo or co-op, the bank will require
insurance to protect its investment in your home. You may,
however, need more insurance to cover your personal items,
liability, or fees that may be charged to you regarding shared
areas of the building like the lobby.
You will need two separate policies to protect your investment:
- Your own insurance policy.
This provides coverage for your personal possessions, structural
improvements to your apartment, and additional living expenses
if you are the victim of fire, theft, or other disaster listed
in your policy. You also get liability protection.
- A "master policy" provided by the condo/co-op board.
This covers the common areas you share with others in your
building like the roof, basement, elevator, boiler, and walkways
for both liability and physical damage.
What type of disasters are covered?
Most homeowners insurance quote policies cover all disasters listed below,
but it is safer to check with your insurance company.
- Fire or lightning
- Windstorm or hail
- Explosion
- Riot or civil commotion
- Damage caused by aircraft
- Damage caused by vehicles
- Smoke
- Vandalism or malicious mischief
- Theft
- Volcanic eruption
Can I own a home without a homeowners insurance quote policy?
Unlike driving a car, you can legally own a home without homeowners
insurance. But, if you have bought your home and financed
the purchase with a mortgage, your lender will most likely
require you to get homeowners insurance coverage. That’s because
lenders need to protect their investment in your home in case
your house burns down or is badly damaged by a storm, tornado
or other disaster. If you live in an area likely to flood,
the bank will also require you to purchase flood insurance.
Some financial institutions may also require earthquake coverage
if you live in a region vulnerable to earthquakes. If you
buy a co-op or condominium, your board will probably require
you to buy homeowners insurance.
After your mortgage is paid off, no one will force you to
buy homeowners insurance. But it doesn’t make sense to cancel
your homeowners insurance quote policy and risk losing what you’ve invested in your home.
How do I take a home inventory and why?
Would you be able to remember all the possessions you’ve accumulated
over the years if they were destroyed by a fire? Having an
up-to-date home inventory will help you get your insurance
claim settled faster, verify losses for your income tax return,
and help you purchase the correct amount of insurance.
Start by making a list of your possessions, describing each
item and noting where you bought it and its make and model.
Clip to your list any sales receipts, purchase contracts,
and appraisals you have. For clothing, count the items you
own by category such as pants, coats, shoes, for making notes
about those that are especially valuable. For major appliance
and electronic equipment, record their serial numbers usually
found on the back or bottom.
How much homeowners insurance do I need?
You need enough insurance to cover the following:
- The structure of your home.
- Your personal possessions.
- The cost of additional living expenses if your home is
damaged and you have to live elsewhere during repairs.
- Your liability to others.
