Our home is usually the largest and most important investment we make in our lives, taking a huge part of our income. We need to look as carefully at the insurance policy that protects that investment as we examine the home we buy.
In most states, the policy entitled Homeowners Insurance offers certain standardized coverages. Protection from certain specified perils is the same in all policies that bear that name.
These will carry protection from fire, wind, and certain other hazards, such as vehicular damage, usually after a specified deductible is applied.
The homeowners policy will cover losses due to sudden, unexpected water damage, such as a burst pipe or leaky appliance. Not covered is damage caused by failure to perform routine maintenance. If the pipe burst because it was old and rusty, the damage is not insured.
It is important to note that loss due to flood is not covered by any homeowners insurance policy. Flood insurance is available only from the US government, although most insurance agents are empowered to sell it. If you live in a flood plain, it is imperative to purchase that extra protection.
Earthquake damage is optional coverage on most homeowners insurance policies, and earthquake is expressed as earth movement, which means the house is not covered for mud slides or other damage caused by earth movement. Homeowners with houses built on hillsides should purchase earthquake insurance even if they are not in a fault zone. Check with your agent to find out if a home built on land overlooking a lake or other body of water is protected from slides caused by water erosion. If there is a wall holding back soil on or near the property, be sure earth movement is included in the policy.
Damage to property caused by storms is covered. Homeowners insurance protects against wind, hail, ice, and snow. Fallen trees, branches blown through windows, and roofs damaged by the weight of snow are covered.
Acts of vandalism, malicious mischief and accidental damage caused by others are covered. A window broken by a childs ball, a burglary or theft, and a car running off the road are coverages provided by a homeowners policy.
Be careful not to confuse a fire insurance policy with a homeowners insurance policy. Fire policies are less expensive and less likely to pay off. Statistically, owners are more likely to experience a leaking dishwasher that damages flooring than a fire. The insurance policy placed by your mortgage company because you forgot to pay the homeowner premium normally covers fire only.
The second segment of a homeowners policy is liability. Liability insurance protects the owner from damages to others for which he may be sued. There is usually no deductible for liability, and it is not included in a fire insurance policy. Liability insurance may be added to the policy.
To learn more about getting a speedy quote visit the home insurance page for more information and start spending less than you have been on your home coverage.