A Homeowner’s Policy is an Insurance Policy that provides financial protection for your home and your personal property located at the residence. It can also help cover expenses like a guest hurting themself in your home, or if you accidentally damage someone else’s property. Typically you can expect a Homeowner’s Policy to cover your Dwelling (Foundation/Walls), Personal Property, Other Structures (f.e detached garage), and Liability. Additional Coverages can be added. Homeowner’s Insurance typically only covers things destroyed by listed “Perils”. A Peril is an Insurance term for cause of loss. Common Perils are Fire or Theft. Only Perils listed in your policy can be restored by Insurance. It is very important to have a detailed discussion when choosing a policy to ensure all of your needs are protected.
A Homeowner’s Policy as mentioned helps protect the Financial Responsibility of your Home. Generally most people have Mortgages, or some type of Lien when purchasing a Home. It is usually required in most cases that you show Proof of Homeowner’s Insurance. However this is not just another step in the process, this is one of the most beneficial things you can do to protect your assets. If your Home was destroyed by a Fire or Tornado would you be able to afford restoring it? If so, you are very lucky. Even still we recommend you pay a monthly or yearly premium to avoid such a burden. Another Protection to mention here is Liability. I would say it’s common to expect at some point in your Home you will have Guests. These same Guests are people that could slice their finger in the kitchen helping you prepare a meal, or trip and fall down your steps. Unfortunately Medical Injuries can be followed by a lawsuit. A Homeowner’s Policy can offer Financial Protection and even Legal Representation in Court on your behalf.
Most people can agree not having Homeowner’s Insurance is never worth it when a loss has occurred. There are many factors that can create loss and there are only so many ways to prevent it. Practice Risk Reduction by choosing a Homeowner’s Policy that protects you and what’s yours!