A Guide to Homeowners Insurance
Homes are not merely the roof over our heads; they are a valuable investment in our lives. They are the place where memories are made, sometimes for generations. Therefore, it is only wise to protect our homes with homeowners insurance to allow us to make even more memories with our family and friends.
Here is our quick guide to homeowners insurance:
Why you need homeowners insurance
The purpose of homeowners insurance is to provide a financial safety net in the case of the unexpected. And if you have a mortgage on your home, your lender will require you to carry some level of homeowners insurance so they can protect your investment. So even if your mortgage is paid off, it’s smart to take homeowners insurance to safeguard you in several ways.
Restore your home and other structures
If a severe storm or a fire strikes your home tomorrow, could you afford to rebuild by paying out of pocket? Homeowners insurance helps you recover from these disasters and undertake reconstruction expenses with minimal exposure to your savings. Dwelling coverage and other structure coverage within your policy would fall under these circumstances. It is important to consider where your home is located, especially if your city is more susceptible to fires or severe weather.
Repair or replace personal belongings
You should also consider your personal belongings. Personal property coverage pays the value of possessions that become lost or damaged. An obvious example would be your furniture being destroyed in a fire, but there is more to it that many homeowners don’t realize. For example, homeowners insurance can help in unforeseen circumstances, such as losing your wedding ring in a hotel room.
Personal liability
In today’s climate, everyone needs to be concerned about the potential of a lawsuit. What if a guest trips and suffers an injury on your property? What if your dog bites a visitor? No one wishes these events to happen, but homeowners insurance can help cover others’ injuries and any legal costs you may incur defending yourself.
What does homeowners insurance cover?
HO-2 and HO-3 are the two most common forms of homeowners insurance. HO-2 policies cover specific “perils” in addition to your personal belongings.
These include:
Fire or lightning
Smoke
Theft
Vandalism
Windstorms and hail
Damage caused by vehicles
Damage from aircraft
Weight of ice, snow, and sleet
Freezing of household systems
Riots
Explosions
Falling objects
Volcanic eruptions
Overflow or discharge of water
Damage from artificially generated electrical currents
Sudden tearing, cracking, or bulging of the home
If you prefer more robust protection, then consider HO-3 policies. This form of homeowners insurance covers all risks except those specifically designated by your insurer.
For the most robust coverage, you will want to have an HO-5 policy that covers everything except what the insurer chooses to exclude.
What does homeowners insurance not cover?
No matter which policy you choose for your home, there are certain items that no policy will cover.
These include:
Flooding
Earthquakes
Landslides
Mold
Infestations
Wear and tear
Nuclear hazards
Government action
One item on this list can be covered with an additional policy: flood insurance. This policy is precisely what it sounds like; it pays the costs associated with flood damage, such as repairs, rebuilding, and replacement of personal belongings.
Are you ready to find the best coverage for your home? Rumbaugh Insurance can help you find homeowners insurance in Hanover, PA. As an independent insurance agency, we work with multiple insurance providers to find the best policy for your unique needs. Call us today at 717-632-6001 to request a free insurance analysis to get you started on the right path for better coverage!