Anyone who owns a home will, at some point in their ownership,
come to realize the importance of their homeowner's insurance
policy. Homeowner's insurance policies exist to protect both the
homeowner and the bank lender, at least for the life of the
home's mortgage.
Basic Policy
The basic homeowner's insurance policy covers damages done by
such disasters as fire and severe storms, including hurricanes
and tornados. Damage to your home, property, and possessions are
typically the basic elements covered. However, the amount of
coverage you carry for each is perhaps the most important aspect
of the plan.
Possessions that are lost due to theft are also generally
covered, up to a certain percentage of the insurance policy.
Liability coverage is another basic element of a general
homeowner's policy. Liability protection covers the policy
holder for damages done to another's home or property, even the
damage done by one's pet can be included. However, this is only
damage done to another's property. The homeowner's policy does
not cover damage incurred by the policy holder to his or her own
property or possessions.
Covering Yourself
Many consumers fail to recognize the pit falls that are inherent
in many homeowner's insurance policies. For the most part, it is
generally known that the basic homeowner's insurance plan does
not cover flood damage. While most homeowners consider
themselves safe and on dry ground the majority of the time there
are many who are at risk. Whether you realize it or not, you
might actually live in a flood zone. And then again, even if you
do not, when severe disaster hits, such as a hurricane that
generates dangerous and inevitable flooding, you might become
the unwitting victim of flood damage and the holder of a policy
that fails to cover your damages.
Homeowners must be wary when purchasing their homeowners
insurance. Make sure you buy from a reputable insurance agent
and do not make your policy decisions based solely on getting
the bargain basement price. A bargain basement homeowner's
insurance policy will likely fail to cover you when a real
disaster strikes. Just a piece of paper on which you have spent
money, but now fails you. Buy wisely. Your home and property are
your biggest investment and must be regarded as being worth the
added protection. Discuss with your insurance agent all the
possible circumstances that are truly realistic for your
situation. Make sure your general homeowners policy carries
plenty of coverage that allows for a total rebuild of your home
if necessary and replacement of important possessions. Buy a
standalone flood
insurance">http://www.homeownersinsuranceblog.com">insurance plan if
you are advised to do so.
Documentation
Make itemized lists of possessions. Take photographs of
treasured family heirlooms and items you would like replaced in
like value if they were to become stolen or ruined in a fire or
storm. Videotape the rooms of your home, making a visual
document that literally walks through your home and property.
Then make sure to keep such important documentation safe either
in a safety deposit box or in a fire proof safe in your home.
Such documentation becomes the only proof when property and
possessions are ruined or stolen.
About the author:
Sara Chambers is a marketing consultant and an internet content
manager for
http://www.homeownersins
uranceblog.com">http://www.homeownersinsuranceblog.com">http://www.homeownersins
uranceblog.com
