Homeowner insurance is the economic protection people purchase for their home. It is a contract between buyer and insurance company. It makes sure that insured person gets economic cover from insurer, if home is damaged.
Some important things that you must know about homeowner insurance policy include-
Homeowner insurance covers home and personal belongings inside.
Personal belongings like clothes, jewelry, furniture, expensive furs, sports equipment, silverware and other home appliances are covered.
If other people get injured by your family members or pets, insurance will provide coverage. Damage to other people’s property is also included.
If other people damage your property or belongings, you will not get coverage.
This insurance policy covers disasters like fire, explosion, smoke, hurricane, windstorm, hail, vehicles, riot, lightning and civil unrest etc.
It does not cover disasters like earthquake, flood, or routine wear.
Some policies also provide coverage for other structures on property like a shed or garage etc.
If home is damaged due to natural disasters or other reasons (mentioned in policy), insurance company will pay the hotels bills, meals and other expenses that insured family will need. All the expenses will be paid by company until house is rebuilt.
Policies are different for rental homes, co-op or condos.
Before buying a homeowners policy, it is important that you choose wisely. Keep your family and house’s requirement in mind before making a choice. It is necessary to choose the perfect policy, so that you will not feel economically disabled in the case of any house emergency.