A Beginner's Guide to homeowner's Insurance
Homeowner's insurance is an important piece of the home ownership puzzle. Because almost all mortgage lenders require proof of insurance, having a policy is more of a necessity than an option. However, many potential homeowners aren't clear about what a homeowner's insurance policy covers. While each policy is customizable and has varying details depending on the insurer, there are a few basic commonalities to remember:
Damage to the Interior or Exterior of the House
A homeowner's insurance policy will compensate you financially for damage to your house. Damage from fire, lightning, hurricanes, vandalism and other disasters are typically included in a basic homeowner's insurance policy. However, they usually don't include flood damage, earthquakes or damage from poor home maintenance. These other situations require additional customization or even separate policies depending on where you live.
The personal contents of your home are also covered by homeowner's insurance if lost in a disaster. While this can certainly help recoup losses from damaged appliances, clothing, furniture and other belongings, there's usually a dollar limit on how much the insurer will cover.
Personal Liability for Damage or Injuries
Personal liability coverage helps protect you from lawsuits filed by other people. It covers everyone in the household, including your pets. This helps you avoid paying the bill for accidents suffered on your property in case the other party decides to sue. This part of your policy usually comes with a cap you can increase by paying a higher premium.
Temporary Housing in Case of Rebuilding or Repair
Part of your homeowner's insurance policy includes "additional living expenses" which can pay for a hotel or house rental if your home needs to be repaired or rebuilt. This part of the coverage will reimburse you for rent, hotel rooms, restaurant meals and other costs you might incur while waiting for your home to return to a habitable state. Additional living expenses covered by insurance have a daily limit you can increase by paying more for your coverage.
As with any type of insurance, homeowner's insurance is different from one policy and provider to the next. However, keep these basic things in mind as a place to start when looking deeper into your options.
About the Author
Cheryl Pendenza - Realtor®/Broker Associate
Bringing more than 30 years of experience to the table, Cheryl has a paralegal degree, banking background, and is a member of many professional, civic, and community organizations.
Qualified • Experienced • Skilled
"As a full-time REALTOR®, I am dedicated to providing my clients with a high level of service by building relationships, marketing, and negotiating on their behalf. As a homeowner, I realize how important homeownership is.
Cheryl brings warmth and compassion to her client relationships and referrals have become the backbone of her business. "I’m grateful for every referral and welcome the opportunity to help clients achieve their real estate goals.”
Cheryl Pendenza, Broker Associate affiliated with RE/MAX Andrew Realty Services since 1999 is a local businesswoman and formidable negotiator who can help you achieve your real estate goals. Supporting family, community and local business is important to Cheryl and she can often be found at one of the local restaurants, shops, or galleries.
