Homeowners Insurance — Shielding your house and possessions
Homeowners insurance policies give the insured a blanket of protections for both the house and its contents, and liability protection for injuries and accidents that may occur on the property.
Basic homeowners insurance covers, structure and contents damages, from fire, and some natural disasters. Generally speaking, most homeowner policies will cover the house and garage, personal property on the premises, liability for incidents occurring on the property, and some reasonable living expenses while your home is uninhabitable after an insured occurrence.
Most homeowners policies insure your property for either actual cash value or replacement cost. The actual cash value option usually has lower premiums, but it’s not without its downside. Compensation for loss is calculated on the value of the loss at the time of loss. For instance, A TV you bought for $400 three years ago might have a present value of $50. Of course it’s going to cost much more than that to replace. Replacement cost insurance, while having higher premiums, may be the better value. If you lose a 42’’ TV, of any age, the reimbursement for the loss will be the price of replacing that TV.
Some events aren’t covered by standard homeowners insurance, damage from floods and earthquakes being two of the most common. Homeowner in areas subject to these events will need to purchase specialized coverages.
Homeowners aren’t the only people who need protection from loss or damage to their property. People who rent rather than own and have significant possessions in the apartment, condo or home they rent should have renters insurance for their belongings. Even if your landlord carries insurance on the dwelling, that insurance won’t extend to the contents. Renters insurance is usually very reasonably priced, and is considered a bargain for most renters. The premiums will vary with the locations of the rental unit, the amount of the deductible and any special riders that might be added to the policy to cover special items,
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