Homeowner’s Insurance: What Is It and Do You Need One?

by Admin on August 13, 2012

Not that many people know about a homeowner’s insurance policy, but it is very important, more especially for those who are purchasing a house for the very first time. Such a policy is not only important because lenders, most often than not, necessitate that mortgage properties should be properly insured, but also because you can reap so many benefits out of this kind of protection.

A lot of individuals who rent out do not have renter’s insurance plan on their property, since they feel like this is something that is of no significance to them, or they do not know about it.

However, owning your very own house is an altogether different matter. Now, you have something that is worthy of getting insured. Without a homeowner’s insurance, you could wind up losing your property and still remain liable for mortgage. However, with it, in case you lose your house, there is no need for you to worry since you have the protection which ensures that your house will be reconstructed.

Besides, banks and other financial institutions necessitate that you have a hazard insurance. Many homeowners insurance plans go beyond, adding protection from additional problems, like theft of your personal property as well as liability coverage in terms of injuries inside the property.

The basic type of homeowner’s assurance plan is referred to as the HO-1. This plan gives you coverage from damage by vehicles, aircraft, fire, vandalism, theft and malicious mischief. In addition, it offers liability for any injury to others within your property.

HO-2 or also known as the broad coverage entails the coverage mentioned above, with the addition of coverage against the dangers of falling items, weight of snow, ice and sleet, freezing, as well as other single incidences in plumbing, air conditioning system, heating, and electrical.

The comprehensive coverage, the HO-3 or the HO-5, provides you coverage from all hazards excluding earthquake, flood, nuclear attack and war. Other plans are the HO-4, which is for apartment home renters and the HO-6, which is for condominium owners.

In every plan, the property is safeguarded in a specific percentage to the purchased coverage for the property itself. For instance, if you have your house insured for say $110,000, then your property insurance maybe set at $76,000. If you want to add more coverage to your property, then it can be easily as well as inexpensively purchased.

Just the same as with car insurance, the higher the deductible is, then the lower the premium. Furthermore, your policy will stay low if you keep from bothering your insurance provider regarding minor issues. So, only go for it when you truly need it.

Look at www.seafirstinsurance.com for your next insurance purchase.

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