What is Home Insurance?

Do you know what home insurance is and how it works? The idea of homeowners insurance might seem simple, but it can be easily misunderstood. We’ll be taking a look at everything you need to know about home insurance.

Homeowners insurance is a way of covering you against loss or damage that occurs to your property. It makes sure you have insurance protection if there is damage done to the furnishings within your home, as well as other possessions you own.

Home insurance can also cover you against accidents that happen on your property. Whether you will be buying a traditional home, townhousemodular home, or even shipping container housing, having home insurance is one of the best investments you can make.

Homeowners Insurance Coverage

This type of insurance will normally cover the policyholder on four types of loss. The insurance will cover you for damage to the outside of your home, the inside of your home, damage or loss of your belongings, and injuries on the property.

Though when the homeowner makes a claim on their insurance policy for any of these types of loss, they will be expected to pay a deductible. These deductibles will vary depending on the terms of your insurance policy and are an out-of-pocket cost if you need to make a claim.

The higher your deductibles’ cost, the lower your monthly or annually payable premiums will likely be. Though you have to claim on the policy, you could need to pay a significant amount of money out-of-pocket.

These are things you can expect your coverage to protect:

  • The dwelling.
  • Other structures such as outbuildings, sheds, and fences.
  • Your property inside the home.
  • Liability coverage which pays in the event you injure someone due to neglect.
  • Medical payments if someone gets injured on your property.
  • Living expenses in the event something happens and your home needs repairs.

Home Insurance Liability Limits

Every house insurance policy will have a limit of liability. This is the maximum amount of coverage the homeowner has should something go wrong.

Typically, this amount is set at $100,000, though if the homeowner needs more coverage than this, a higher limit can be available. If more coverage is required, premiums are likely to rise accordingly.

If a claim is made on the insurance policy, the liability limit sets out how the cash will be available. The terms of the liability limit will set out the percentage of coverage available to replace items lost or damaged, repair the property, and pay for the homeowner to live somewhere else while any repair work is being carried out.

Call Stapleton Insurance Group and we would love to walk you through the process of getting the best homeowners insurance that is right for you and your situation! 419-720-6446 

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