What is Home Insurance Policy? Everything You Need To Know
Most homeowners insurance policy will take care of repairs to or reconstruction of your home if it is damaged by fire, smoke, theft or vandalism, or bad weather such as lightning, wind or hail.
A standard homeowners policy, in general, covers your appliances, furniture, and other possessions, as well as medical expenses and legal fees if people other than you or your family are injured on your property.
Jewelry, artwork or other collectibles in your home, identity theft protection, or damage caused by an earthquake or flood are only covered by optional policies.
If flood insurance is not offered by your homeowners insurance company, you may be eligible for coverage through the National Flood Insurance Program, administered by the Federal Emergency Mana0gement Agency.
NFIP policies are offered through independent agents nationwide. Costs and requirements can vary widely depending on risk factors where you live. FEMA’s website includes an interactive flood map that can help determine the risk in your area.
To determine whether you need additional homeowners insurance beyond what’s included in a standard policy, start with the most obvious factors. If you live in or are looking at homes in an area prone to earthquakes, wildfires or extreme weather, look for a policy that covers those types of events.
Next, think about what it would cost to replace major items such as a damaged furnace, water heater, roof or even your entire home. Talk to an independent insurance agent, call insurance companies directly or check company websites for guidelines.
Inventory your possessions, including your vehicles, artwork and other valuables. Consider what it might cost to live with relatives, in a hotel or in a rental unit while your home is being repaired or rebuilt.
A basic rule of thumb is to make sure you buy enough coverage to replace your home and its contents. Be honest in your assessments and make sure that any policy you consider will be sufficient.