If you are a homeowner, you have probably heard the word “insurance,” more times than you can count. You may have already purchased homeowners insurance in peoria az or had it offered to you through your mortgage company. Although most people understand that homeowners insurance protects their house in case of fire or theft, many do not know much about the coverage they receive when they buy this type of policy.
This article will discuss some home insurance basics and provide tips on how to get the best value out of every dollar spent on them.
What Is Homeowner’s Insurance?
Homeowners insurance is a financial security blanket – it helps ensure that if something unexpected happens to your home, its contents, or your liability, you’ll be protected financially. The most common types of coverage are for damage caused by fire, wind, hail, theft, and vandalism.
Your insurance policy will also usually provide some degree of liability protection in case someone is injured on your property. This could be a guest in your home, a child playing in your yard, or even a delivery person making a drop-off at your front door.
What Does Homeowner’s Insurance Cover?
The specifics of what is covered by your homeowner’s insurance policy will vary depending on the particular policy that you have purchased. However, some general coverages are included in most policies.
Property damage: This type of coverage helps protect your home and its contents in the event of fire, wind, hail, theft, or vandalism.
Liability protection protects you financially if someone is injured on your property and decides to sue you.
Medical payments: This coverage helps pay for the medical expenses of anyone who is injured on your property, regardless of whether or not you are at fault.
Additional living expenses: If your home becomes uninhabitable due to a covered loss (such as a fire), this coverage will help temporarily pay for the costs of living somewhere else.
What Does Homeowner’s Insurance Not Cover?
Just as certain things are covered by homeowners insurance, certain things are not covered.
Certain types of damage, such as flood damage, are not typically covered by homeowners insurance policies. In addition, most policies do not cover damage that is caused intentionally by the policyholder or their family members. And finally, most policies do not provide coverage for losses that occur outside of the United States.
How Much Does Homeowner’s Insurance Cost?
The cost of homeowners insurance will vary depending on a number of factors, including the size and age of your home, the location of your home, and the amount of coverage you choose. However, on average, homeowners insurance costs around $700 per year.