Investing in a house is an expensive and vital aspect to your adult life. Insurance often gets an unfair reputation as a boring thing handled by boring people.
Insurance is vital to protect yourself against the unexpected. Life is nothing if not full of unexpected incidents.
What Can Homeowners Insurance Protect Against?
- Mother Nature Being Grumpy - Homeowners insurance will cover when basic nature comes up and kicks your house in the ass. Windstorms that knock a tree branch through the roof are going to be be covered. Excessive hail storms that cause damage to things throughout your property should be covered. Lightning strikes
- Fire! - Fire is one of the most common reasons to pick up homeowners insurance. Fires to a home can be devastating and oftentimes happen despite taking as many precautions as possible. Fires can gut an entire house and often require a full rebuild of the house. Some coverages will cover replacing the house but also interim lodgings for the owners so that they aren’t out on the street while the house is being rebuilt.
- Theft or Vandalism - Mother Nature may not be the only one out to damage your house. Mankind is an imperfect society and there are always going to be those hoping to gain that which others have earned without making any effort on their own. Homeowner insurance will usually cover replacement of anything stolen though of course it’s impossible to cover the sentimental value of everything that’s been taken.
- Volcano - Obviously this isn’t a coverage for most people. Well, it can be at a pretty reasonable price for people who want it but are nowhere near any geothermal activity. Specialized coverage for people in Volcanic areas.
- Hurricane or Tornado - These are considered premium natural disasters and as such are not involved in most homeowner insurance policies. It’s a wise investment in places like Florida or Louisiana for hurricanes or in any of the tornado plagued midwestern states.
- Flood - This isn’t a case of flooding in the basement because there’s a crack in the foundation. This is a natural disaster level flood. This option is not a terrible choice when you’re living in a city with a large river that features big swings in the water level. A fast thaw in winter could potentially lead to unexpected water levels.
- Earthquake - Earthquake insurance policies are very common on the west coast of North America. They are the most useful then.
What is Protected by Homeowner Insurance?
Your house isn’t the only thing protected when you get homeowner insurance. Homeowner insurance will of course cover your house, but what else?
- Full property buildings - Homeowners insurance generally covers any building on your property aside from business buildings. Farm barns wouldn’t be covered as they are business buildings and could need extra coverage. But your shed or a pool house or detached garage is all covered! Even fences can be covered!
- Personal Property - This is especially significant during theft or vandalism. They will replace the items that have been stolen or damaged .
- Relocation Coverage - You need to stay somewhere while your house is being repaired. Most coverages will pay for that.
- Liability - Your homeowners insurance may be there for you incase you face a lawsuit relating to your dwelling causing injury to someone. With the amount of frivolous lawsuits continuing to increase it’s a nice safety net.