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homeowners insurance

What is Homeowners Insurance?

Because everyone’s needs are not the same, it’s best to consult your agent to help assess your needs and find the insurance policy that is right for you. But first, what exactly is homeowners insurance? Homeowners insurance provides financial protection against disasters. A standard policy insures the home itself and the things you keep in it.

Homeowners insurance is a package policy. This means that it covers both damage to your property and your liability or legal responsibility for any injuries and property damage you or members of your family cause to other people. This includes damage caused by household pets.

Damage caused by most disasters is covered, but there are exceptions. The most significant are flood or earthquake damage, and poor maintenance. You must buy two separate policies for flood and earthquake coverage. Maintenance-related problems are the homeowners’ responsibility.

The question you may be asking is, “Why do I need homeowners insurance?” It is really about protecting yourself financially if something unexpected happens to your home or possessions. That’s important because chances are, your home is likely one of your largest investments.

An Example

For example, if a fire or natural disaster destroys your home, you’d need money to repair or replace it. Or if a an injury happens to a guest in your home, liability protection and medical coverage help pay expenses. Or if you are a victim of theft and vandalism, it can reimburse you for your loss or pay for repairs. And if you are still paying for your home, your lender will require insurance. It is important to know that homeowners insurance is meant to cover unexpected damage, not routine maintenance. Ask your agent to talk about what is covered and be sure to read your policy so you know exactly what’s included and what is not.

Here are few things to discuss with your agent that will influence your decisions:

  • How much will it cost to rebuild my house? How much will it cost to replace my damaged or destroyed belongings? Ask your agent to talk you through your home’s features and the things you own so you can make an informed decision about coverage.
  • Does the insurance company have a good reputation for customer service?
  • What discounts are available? Ask about multiple policy discounts, security system and fire resistance discounts.
  • What’s the process for filing and settling a claim? Ask who to call and what happens after you file a claim.

Get advice and choose the best plan

At ACA Advisor we are aware that preparing for the unexpected ensures your family peace of mind.