The Ins and Outs of Homeowner’s Insurance

Insurance is a big part of keeping yourself and your things safe. “Ensuring” you have something to fall back on if things go wrong is its entire purpose, after all. Just like with your car, your life, your health, and plenty of other things you hold dear, your home is one asset that’s also going to need insuring. But for as much as people talk about homeowner’s insurance, there’s a lot you might not know if this is the first time you’re looking into it. If that’s the case, here’s a short guide on the ins and outs of homeowner’s insurance to help you understand what it is and what it can do for you.

What is Homeowner’s Insurance?

Homeowner’s insurance is insurance for your home. Just like other types of insurance, insuring your home means that you pay a monthly or yearly premium in order to have the insurance company foot the bill for things like repairs if your home or other domestic property becomes damaged. While the extent and payout from these policies vary, homeowner’s insurance is one of the most basic ways to keep you in a good position in the event there’s a disaster.

What Does Homeowner’s Insurance Cover?

When it comes to what homeowner’s insurance will and won’t cover, one phrase stands out above all else — it depends. As different policies will have different stipulations, it’s not possible to create a 100% comprehensive guide on what your coverage will apply to. However, many policies do have certain things that are covered most frequently that you can use as a baseline for what you can expect from a good policy.

First and foremost, however, you need to know homeowner’s insurance is only available to those who own their homes like the name implies. For renters, you’ll need to get specific coverage for the property that you rent rather than own. These two types of insurance are similar but not the same, so don’t make the mistake of assuming you’ll be covered if you go from renting to owning a property.

When insured properly, your policy should cover the entirety of your property. This includes your home as well as the ground it’s on up to wherever your legal deed specifies. This means that your homeowner’s insurance does not merely end at your home but to things like your driveway.

Additionally, the objects inside your home and on your property that you own are likely insured, too. While valuable personal property likely requires its own form of insurance, things like tables and chairs should not. Many insurance policies are also bundled with personal liability protection, meaning that those who become injured on your property under normal circumstances and who are properly informed and aware of any dangers present will not be able to sue you for damages, a protection that often extends to pets, as well.

Finally, while everyone’s policy is different, homeowner’s insurance most often specifies things like natural disasters and accidents as included. If you’re in an area that’s susceptible to a specific kind of disaster, checking to make sure the policy you’re looking to purchase covers that disaster is a good move.

In Summary

Insurance policies can be a bit confusing, thanks in part to how varied a specific policy can be. While you’ll still want to read and make sure you understand what you sign, the protections listed here should give you a good idea as to what you’ll get when buying homeowner’s insurance.

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