Homeowner's Insurance Text Size:

Homeowner's Insurance isn't just a good idea, it's required unless you own your home outright. Although it might seem like an annoyance to constantly pay insurance premiums that you never make a claim against, your insurance can make all the difference in the world when recovering from a disaster. There are two types of coverage under a homeowner's policy, casualty and liability.

Casualty Insurance

Casualty insurance covers damage done to your house. It often covers your personal possessions inside the house as well, although there may be limitations on this. When purchasing insurance, make sure to go over your needs carefully with your representative. If your home has upgraded features, historic value, or houses a home business or expensive collections then you will need to get a more comprehensive policy that will cover these things. Be specific when working these details out. The last thing you want is to lose your home in a disaster and discover belatedly that the stamp collection that was worth more than the house itself is not covered under your policy.

It is also important to check your policy for exclusions. If you live in an earthquake zone, you may need to purchase separate insurance to cover damage caused by earthquakes. The same is often true for flood insurance.

Liability Insurance

Liability insurance covers you if someone is injured on your property. If someone slips and hurts themselves and tries to sue, your insurance company will cover that person's medical expenses and the cost to defend you in court. Here it is also important to discuss your needs with your agent. If you have potential hazards on your property such as a swimming pool or if the house is in poor repair, find out exactly what you need to do to protect yourself.

Even if you don't have a mortgage on your house, it is a good idea to have a homeowner's insurance policy. Accidents happen and so do disasters. When they do it is better that the cost to recover from them comes out of the insurance company's pocket and not yours.

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