For most people, their home stands as their most valuable investment. Therefore, it must be properly insured to protect against unexpected perils. Also, lenders require homeowners insurance as a condition of the mortgage. Let’s build a homeowners policy with attention to all aspects of your home.
Lay a Solid Foundation
In most cases, dwelling coverage will protect against flood damage in basements. Those who live in flood plains must purchase additional flood insurance mandated by the federal government.
Typical exclusions from homeowners policies include earthquakes or floods. However, a homeowner can opt to get special coverage to protects against such calamities. Most policies, however, do cover events such as hurricanes or tornadoes. In cases of extreme damage to a home, homeowners insurance pays the costs of living elsewhere while repairs are made on the home.
Frame the House
Standard homeowner’s insurance policies cover the exterior of the dwelling. This includes the roof, brick, siding, window frames, shutters, posts and pillars.
Finish the Interior
Interior walls, ceilings, floors, cabinets, closets and windows typically fall under standard homeowners policies.
Additional coverage to protect gas lines, electric lines and water lines and potential sewer backups can be purchased for additional costs.
Beautify the Yard
Other coverages can be added to protect outbuildings and other structures, such as detached garages, sheds, fences, decks and gazebos.
Furnish the Home
Personal property coverage, included in the standard homeowners insurance policy protects a homeowner’s possessions – furniture, appliances, jewelry and furs and other valuables against such perils as fire, burglary or vandalism. People can opt to get a separate personal articles insurance policy to insure valuables above the standard limits of their homeowners policy.
Hold the Housewarming Party
Protect all your guests. A key component of standard homeowners insurance policies is liability coverage. It protects a homeowner in case of an accident causing injury to another party inside the home. The standard limit usually caps at $100,000, but a policyholder can choose a higher limit.
Although not required, renters insurance offers similar protections as homeowners insurance. Liability coverage protects the tenant’s personal property against such perils as fire, theft or vandalism. It also pays expenses if the abode becomes uninhabitable.
Please note that coverages are not guaranteed. Claims must be approved by an insurer’ claims adjuster.