What is Homeowners Insurance?
Owning a residential property comes with many concerns including damage from other people and nature. Insurance for homes provides the funds that are needed to take care of repairs of major structures or complete rebuilding due to a total loss. People who own homes can sleep better knowing their most precious investments are protected.
Who it is For
Individuals who legally own residential real estate have the option of buying home insurance. This type of insurance protects properties such as condominiums, co-ops, apartments, townhouses and other types of single or multi-family units. When buying insurance for a home, the owner has to present an official title or deed to the property in question.
How it Works
When a homeowners insurance policy is drafted, an appraisal on the home has to be done. Once the market value of the property is established, a fair price for the insurance premium can be set. The monthly payments for the policy correlate directly to the appraised value of the house. Homeowners have the option to file a claim when there is a need to receive money for minor to major damage.
Different Types of Coverage in Existence
First and foremost, home insurance protects the most important structures such as the roof and foundation. Dwelling protection also encompasses windows, doors and other hardware that is attached to an actual home including plumbing pipes. However, detached property such as appliances would have to be covered under a separate clause. Washing machines, dryers and refrigerators can be fully insured regardless of the cause of the damage. Water-related damage is not always covered by this insurance plan, and the claim has to be investigated carefully to determine the source of the water such as spilled aquariums or jugs.
Insurance for homes is helpful in paying for major repairs and renovations that have to be done after an accident occurs due to man-made actions or natural events. Whether it’s a gas pipe explosion or a hurricane, this type of insurance provides some peace of mind when it comes to dealing with the costs of rebuilding a home.