What Type of Homeowner’s Insurance Do You Need?

Getting homeowner’s insurance is one of the most crucial parts of becoming a homeowner. However, sometimes is can be incredibly confusing to wade through all the different options there are for coverage. For instance, what if there is a fire – is it just your home, or will your personal effects be protected too? Anything can happen and that is why homeowner’s insurance is so important, but some policies might be more expensive than others depending on the type of coverage you need or want. Some coverage can go so far as cover your medical expenses in the instance that you were injured in your home. Here are some things to consider when determining what type of homeowner’s insurance you need.

First, you need to determine the market value of your home. Most homeowner’s insurance policies cover the basic damage compensation in the instance that there is a fire, a severe storm, or even vandalism. Under most policies you can be reimbursed for minor to significant damages, but what happens when you need to completely rebuild your home? If your home is a historical landmark or would cost more to rebuild than the market value is worth is important to discuss your options with your policy provider.

If you have a timeshare property or a vacation home, you might be better off with simple fire coverage. Simple fire coverage covers your home from fire and other destructive damages, but doesn’t cover other expenses, like medical and personal property. The reason why you don’t need anything more than this type of coverage is because most vacation or part time homes are unoccupied by the main resident for a majority of the year. This type of insurance is also the most affordable. Renters or other occupants could take out their own policy, but if they are only spending a few days or weeks it might not be worth it.

Also, if you are looking to cover your home from other disasters, like floods and tsunamis it is important to note that most homeowner’s insurance policies don’t cover these types of catastrophes and any damages they cause. If you want your coverage to protect you from floods and other disasters, it is important to look for a private policy. Floor insurance is usually separate from other types of insurance and is provided by specialized insurers.

Lastly, if you live in an area that is particularly susceptible to major catastrophes, like mudslides or tornadoes, your homeowner’s insurance policy will usually have you covered. If you live in Florida – where there is a higher risk of mold damage from the humidity, hurricanes and even sink holes – you might be interested in Florida homeowners insurance serviced by Alliance and Associates. When it comes down to it, your home is a central part of who you are – it is where you live and it is where you raise your family. Finding the right homeowner’s insurance comes down to the protection of your property and your valuables, but also your loved ones as well.