Homeowners insurance is a must for any family that owns their own house. It is typically required by any mortgage lender. The policy protects your finances from the burden of rebuilding and repurchasing property after costly damage occurs. Although it is similar to renters insurance, homeowners insurance contains special provisions for real property owners, who must handle all of the rebuilding details after a disaster.
Keeping a homeowners insurance policy grants you peace of mind by insuring against possibly devastating financial loss if damage occurs to your home. The replacement cost of homes often outweighs the original purchase price by a significant margin, creating a financial burden that few families are prepared to shoulder. Homeowners insurance provides the money to get back on your feet and rebuild in the case of a disaster or to replace any lost personal property.
Insurance payouts allow families to go through the rebuilding process quickly, helping them to move on and get back to their normal lives. Insurance payouts help families repurchase lost property and repair their homes as quickly as possible. Not only can a quick recovery save money, it can also benefit families' psychological health, reducing stress and feelings of loss.
Homeowners policies cover a range of causes of the damage to covered property, including natural disaster, fire, theft or vandalism. The policy generally covers damage to the interior and exterior of a house, as well as damage to personal property inside or outside the home. Homeowners policies also cover personal liability for injuries that occur to others on policyholders' property.
A distinct advantage of homeowners insurance policies is the ability to include extra, unique provisions above and beyond normal coverages. Although extra provisions generally boost insurance premiums, they can provide protection for homeowners in unique situations or to cover expensive jewelry or artwork. You can also buy extra provisions for freezing and thawing pipes, for example, if you live in an area with severe winter seasons.
- San Diego Fire Fighter image by Charles Kaye from Fotolia.com