Homeowner's insurance is an important piece of the home ownership puzzle. Because almost all mortgage lenders require proof of insurance, having a policy is more of a necessity than an option. However, many potential homeowners aren't clear about what a homeowner's insurance policy covers. While each policy is customizable and has varying details depending on the insurer, there are a few basic commonalities to remember:
Damage to the Interior or Exterior of the House
A homeowner's insurance policy will compensate you financially for damage to your house. Damage from fire, lightning, hurricanes, vandalism and other disasters are typically included in a basic homeowner's insurance policy. However, they usually don't include flood damage, earthquakes or damage from poor home maintenance. These other situations require additional customization or even separate policies depending on where you live.
The personal contents of your home are also covered by homeowner's insurance if lost in a disaster. While this can certainly help recoup losses from damaged appliances, clothing, furniture and other belongings, there's usually a dollar limit on how much the insurer will cover.
Personal Liability for Damage or Injuries
Personal liability coverage helps protect you from lawsuits filed by other people. It covers everyone in the household, including your pets. This helps you avoid paying the bill for accidents suffered on your property in case the other party decides to sue. This part of your policy usually comes with a cap you can increase by paying a higher premium.
Temporary Housing in Case of Rebuilding or Repair
Part of your homeowner's insurance policy includes "additional living expenses" which can pay for a hotel or house rental if your home needs to be repaired or rebuilt. This part of the coverage will reimburse you for rent, hotel rooms, restaurant meals and other costs you might incur while waiting for your home to return to a habitable state. Additional living expenses covered by insurance have a daily limit you can increase by paying more for your coverage.
As with any type of insurance, homeowner's insurance is different from one policy and provider to the next. However, keep these basic things in mind as a place to start when looking deeper into your options.
About the Author
Ryan Mandigo
Ryan Mandigo is an award-winning professional broker associate with Omni Real Estate. Originally a native of New Hampshire, his love of real estate began 30+ years ago while swinging a hammer on a framing crew. He has always had a strong passion for helping people, whether it be assisting a couple in purchasing their first home, finding a home that fits a growing family's needs, or downsizing for those with an empty nest. He strives to build strong personal and professional relationships with being a true believer in the power of positive thinking and always willing to lend a helping hand.
He is also a co-founder and board member of the Swing Fore the Kids organization. A local charity that is 100% nonprofit and their sole purpose is to help needy children and young adults within Horry County communities. He finds great satisfaction and pleasure in seeing how working hard for a great cause and raising funds can help others in need. He is also on the Board of Directors for the Waccamaw Youth Center in Conway, where their mission is to provide at-risk youth "A Place To Call Home"
When he is not working, he enjoys music, working around the home, spending time with family and friends, turning wrenches on vintage vehicles, getting some wind therapy on the Harley or chilling with their dogs.
Some quotes he lives by - "Do what you like and like what you do" - "You have to be odd to be number one" - "Dreams don't work unless you do" And one of his favorites. "Positive and enthusiastic thinking in all you do"
