House Insurance: What You Need to Know Before Buying

Tue, 10/30/2012 - 02:58 - mykethomas

For most people, their house is likely their most expensive and important asset. It is important to make sure that your house and your belongings are protected at all times, by having a house insurance coverage. In the event that a disaster occurs, such as a flood, theft or fire, house insurance will repair or replace your stolen or damaged belongings, and it can provide you with temporary housing while your house is being fixed or rebuilt. It is also important to keep in mind that not everything is protected by a standard house insurance policy. Therefore, you should carefully review your policy documents and go over your coverage with your insurance company before getting the policy.

Benefits of House Insurance

Home prices are more expensive than ever and nowadays a small damage or malfunction such as a broken water heater can be very costly to use repair. House insurance provides highly needed financial protection for your house and your belongings, while protecting you against financial loss due to lawsuits brought about from accidents that happen on your property. You can obtain extended coverage to protect against damage due to earthquakes, hurricanes and flooding, which is a necessity for many homeowners.

How House Insurance Works

House insurance protects against damage from a range of causes. Many types of house insurance protects against damage caused by wind, fire, theft, lightning, hail, smoke and vandalism. Damage caused by falling objects, such as airplanes, is also usually covered. Frozen plumbing and burst pipes, cracking, tearing or bulging caused by hot water systems or steam are also covered. And water damage resulting from plumbing incidents is also covered. Some insurance policies offer coverage against damage to the contents of a house, but most standard insurance policies do not provide coverage against damage caused by floods, sewer overflow, nuclear accidents, earthquakes, intentional damage or war. If covered damages occur, you can file a claim with your insurance company and receive replacement or compensation for any items or structures that need replacement or repair. Some house insurance policies may provide special instructions on how to file a claim and receive payment. Typically, inspections and repairs are performed by an approved company to avoid violation of the terms of the policy.

Types of House Insurance

House insurance can be categorized into three main types: personal property or contents coverage, building coverage, and liability coverage. Personal property coverage entitles you to replacement or reimbursement of your damaged personal belongings located inside your house, such as furniture and electronics. Some types of personal property insurance provide protection to areas outside the house, meaning that your personal belongings are protected even when removed from your house. Building coverage covers the structures of the house, such as the roof, foundation, walls, doors and windows. Liability coverage involves claims of negligence, and it covers legal expenses that may occur if a person gets injured while in your house or on your property. For example, if your visitor falls down and gets injured, your liability coverage will be pay for any the person's medical expenses and legal fees involving the accident.

Considerations

House insurance is absolutely necessary because it offers financial protection and peace of mind. If you have house insurance, it will protect your house, personal property and your bank account. You should make sure that you get a comprehensive policy to ensure that you have full protection. And always read the fine print and understand the contract and conditions before you put your signature on any document.

Author’s Bio: Myke Thomas is a freelance writer, professional blogger, and social media enthusiast. His blog Homeinsurance.org focuses on home insurance. You can follow him on Google+ and Twitter.
 

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