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Why do I need Homeowners Insurance?
Homeowners insurance
is a package policy. This means that it
covers both damage to your property and
your liability or legal responsibility
for any injuries and property damage you
or members of your family cause to other
people.
Unlike driving a car,
you can legally own a home without homeowners
insurance. But, if you have bought your
home and financed the purchase with a
mortgage, your lender will most likely
require you to get homeowners insurance.
Another name for this is sometimes
referred to Hazard Insurance. Hazard insurance is property insurance that you are required
to purchase to cover any damage that may
occur to the property itself or to someone
while in or on the property.
Frequently the lender requires
the first year's insurance premium to
be paid at close of escrow.
This is usually required because
lenders need to protect their investment
in your home in case your house burns
down or is badly damaged by a storm, or
other disaster. If you live in an area
likely to flood, the bank will also require
you to purchase flood insurance. Some
financial institutions may also require
earthquake coverage if you live in a region
vulnerable to earthquakes. Usually the first year that you purchase a home, the insurance
will be paid out of.
If you buy a condominium, your
board will probably require you to buy
homeowners or condo contents insurance.
After your mortgage
is paid off, no one will require you to
buy homeowners insurance. But it doesn't
make sense to cancel your policy and risk
losing what you’ve invested in your home.
Protect your Home,
Protect your belongings, and protect the
assets you’ve worked so hard for!
Dwellings and other
structures - For most of us, our home
is the single, largest investment we will
make.
Homeowners insurance provides coverage’s
for damage to your home and other structures
on your property such as a shed or detached
garage.
Personal Property -
Homeowners insurance also provides coverage
for your household contents and personal
belongings. You may think your couch,
coffee table, sweaters, shoes, coats;
TV, VCR and CD player aren't worth a lot
but those items all add up.
Personal Liability
- In the event someone is injured
on your property or you damage property
that belongs to others, you could be held
legally liable for the injury or damage.
A homeowner policy provides liability
and personal property insurance to financially
protect you should this ever occur.
Is my jewelry covered
by my homeowner’s policy?
On a homeowner’s policy, there is
limited, standard coverage available for
your jewelry and watches. In most cases, you will
need to purchase a Personal Articles Floater,
which extends protection for your jewelry or other items
when its value is higher than the limits
stated in your homeowner’s policy. An appraisal is required for each item that you want to have on the jewelry floater. This is beneficial for you so that the insurance company can replace your item for it's appraised worth. A jewelry floater can have it's own separate deductible for each item. Contact
John Tesoriero at 619-889-0889 to discuss
adding a jewelry floater or increasing
your coverage.
Am I covered for
earthquake damage?
No. Earthquake coverage is available
as an additional coverage to the homeowner’s
policy. Earthquake coverage has it's own separate deductible. Generally this there is either a 10% or 15% deductible for Earthquake coverage. You can custom tailor your earthquake coverage to include a certain amount of personal property coverage along with coverage for your house itself. To determine whether you should
purchase this insurance, talk to your
local insurance agent. In earthquake
prone areas, the cost of this insurance
is relatively high due to the risk. In other areas, it
is relatively inexpensive.
What is a landlord or rental dwelling insurance policy?
A landlord insurance or rental dwelling insurance policy is a policy for a homeowner that rents their home out to tenants. This type of policy can generally be used for properties from 1 to 4 units. For anything larger than 4 units, then you generally need a commercial apartment insurance policy. Landlord insurance or rental dwelling insurance provides protection for the homeowner in the event of a fire, but also provides protection for things such as loss of rents. Loss of rents is a special coverage that provides protection for you when during a covered loss, it pays for the loss of rental income that you would be receiving from your tenants, if damage causes the property to become unfit for habitation. Because landlord insurance covers only the property and the rights of the landlord, tenants can greatly benefit from renters’ insurance. Damages to personal belongings or another person’s property within a tenant’s residence become the responsibility of the tenant.
Renters’ insurance will provide liability coverage and, in some cases, it could also cover pertinent legal expenses. Renters’ insurance, similar to that offered to landlords, has a variety of options for coverage. Some of these coverage's include replacement coverage, increased liability limits, special limits on computer and electronics coverage's, etc. For more info on renters insurance, please see Renters insurance info and help
When
should I think about adding or increasing my homeowner’s
insurance coverage?
Generally, you should
contact your agent about reviewing your
coverage whenever you change something
significant about your home or its contents,
for example, you should discuss with your insurance agent:
• When you put on an
addition to your home
•
When you start a business from your home
• When you make a major
purchase, such as jewelry, a computer.
• When you purchase
other residential properties either for
rental or as a second home.
Please
Note: The information contained in this
Web site is provided solely as a source
of general information and resource. It
is a not a statement of contract and coverage
may not apply in all areas or circumstances.
For a complete description of coverage's,
always read the insurance policy, including
all endorsements |
