Purchasing a new house is one of the most important investments you can make in your lifetime. You should be proud of the ability to buy a home and, even more importantly, you should want to do anything you can to protect your investment. A house owners insurance policy can help you to protect your home from many of the risks it faces.
Every house insurance policy can be different. It is important to read through your policy very carefully to understand what types of protections it provides and what may not be covered. Here are some of the ways your house owners insurance policy can help you.
Loss or Damage to the Building
Many times, the claims filed against an insurance policy relate to the loss or damage to the building itself. There are many reasons for this including:
- Fires
- Lightning
- Bursting, leaking or overflowing water from heating systems or pipes
- Explosion
- Damage from storms, wind, water, hail, and snow
- Theft including damage from forcible or violent entry into the property (Keep in mind limitations exist here as to what, how much and when policies apply)
- Aircraft or other aerial devices dropped onto the property
- Damage from impact of animals, satellite dishes, vehicles, trees, or other items
- Earthquakes
In most cases, this type of insurance covers the loss of the item (or repair) or the repair of the structure as needed. Most policies have a limit as to how much money is available to cover any claim amount. Additionally, the covered incidents must be non-intentional and not related directly to poor maintenance or misuse.
Additional Provisions Many Insurance Policies Offer
Many policies offer additional protections. This is where these types of policies can become incredibly beneficial. Some examples of additional protections may include:
Capital Additions: Many policies offer protection for the capital changes you make to the property. This may include home additions, improvements or alterations, most often up to a specific amount (usually 20% of the value).
Professional and Other Rebuilding Costs: It is important to have an insurance policy that covers your property’s actual value not just the actual value, but the cost to replace the home. In a case such as fire, where the property is significant damaged, it is important that the insurance cover the costs of professionally rebuilding the property.
Other policy options may include coverage for public supply and mains connections, loss of rent, mortgage clauses, and glass or sanitary ware. It may also be possible to add additional types of coverage to your policy to make it fit your unique home’s needs.
Most importantly, home insurance provides you with peace of mind. With it, you know that if something does occur to your home, such as a fire or theft, there is financial back-up to protect your investment. You can feel good about purchasing your home knowing that there is a policy in place to keep you financially protected from any losses covered by the insurance you own.