Insurance Technology Solutions is your nationwide homeowner insurance experts. Offering policies from all major carriers we will shop your home and get you the most coverage for the least money.
What is Homeowner’s Insurance?
Homeowners insurance, also known as hazard insurance and home insurance are a type of insurance on a property that covers any and all private homes. It is an insurance that combines many different aspects of protection that include, but are not limited to all losses occurring in the insured’s home. These covered losses include possessions, family, and even the house itself. Liability insurance is also available for accidents and disabilities that may happen in the home, or at the hands of the home owner within the outer premises of the home.
You want to keep in mind that you need to insure your home for the cost to replace it. This typically only includes the construction costs associated with your home, and not the market value or value of the land that it is on. Once you determine the level of coverage needed for your home, you can then consider any special add-ons that might be needed for valuables and pricey possessions throughout your home. Additional coverage may be needed for earthquakes, flooding, windstorms, and other natural disasters depending on the area you live in.
Many lending institutions where people finance their homes through require the home buyer to obtain home owners insurance. Do not rely on the coverage levels that the bank or mortgage institute that you go through minimally require. The levels they set are designed to protect the house itself, and not the possessions or family living within it. This is why it is important to check with your agent or insurance company to ensure you have adequate coverage on your home, possessions, and possibly your family.
If you would like the extra security for your home, then you will want to purchase the highest percent of replacement cost endorsement that your income allows for. If you suffer from a large loss, then find out that the insurer set your limits lower than anticipated, all of your possessions and home may not be covered. Make sure to itemize, and come up with the figures that it would take to replace your possessions. Adjust your home owners insurance accordingly. This is also known as scheduling.
What is Covered in Home Owners Insurance
There are a number of riders and extras that can be added to a home owner’s insurance policy to suit living needs and personal preferences. The basic policies normally cover the majority of the same things such as the dwelling itself against natural disasters and such. A lot of these stipulations are covered under basic codes, and can be added too or taken off of due to personal preference or to allow room for personalization of a home owner’s insurance policy.
The perils that are covered in the basic insurance policies include, but are not limited to depending on whether or not you receive riders as well:
- Fire or lighting in the home
- Civil commotion or a riot
- Damages caused by an aircraft
- Damages caused by vehicles
- Smoke damages
- Vandalism or malicious mischief
- Theft of possessions within the home or perimeter specified in the policy
- Volcanic eruption
- Various falling objects
- Ice, snow, or sleet weight
- Discharge or overflow of water from within a plumbing, heating, air conditioning, or automatic sprinkler system. This also includes household appliances and steam. These occurrences must be accidental.
- Tearing, cracking, bulging, or burning of steam or hot water heating system, air conditioning system or fire protective system. This should be sudden or accidental in nature.
- The freezing of a heating, air conditioning, plumbing, sprinkler system, or household appliance.
- Damage from an artificially generated electrical current. This does not apply to loss of a tube, transistor or similar electronic component within the system.