Reading a homeowners insurance policy can be confusing. Here are answers to the most-asked homeowners insurance questions that explain what homeowners insurance is, and what it covers.
What is homeowners insurance?Homeowners insurance is a contract between you and your insurance company that protects you from financial loss when your home is damaged or destroyed, or when someone hurts themselves and you're found to be at fault. You pay a premium for which your insurer agrees to pay for any damages that are outlined in your policy.
What does homeowners insurance cover?Homeowners insurance covers the following:
* House structure coverage which pays to repair or rebuild your home when it's been damaged or destroyed by fire, storms, vandalism, and water leaks. Earthquakes and floods are not covered, so if you live in an earthquake or flood zone you'll need to get additional coverage.
* Personal property coverage which pays to replace any of your personal property that's been stolen, or damaged by fire, storms, vandalism, and water leaks. Expensive items like computers and jewelry may have a limit on coverage, so you may need additional coverage for these items.
* Loss of use coverage which pays for your additional living expenses - hotel, motel, and restaurant bills - when your house has been damaged by fire, storms, vandalism, or water leaks, and is being repaired.
How much coverage should I get?For house structure coverage you should get enough coverage to pay for rebuilding your house. You can find out how much this would cost by asking a local builder or real estate agent.
For personal property coverage you should get enough coverage to replace your possessions. You can figure out how much you need by totaling the value of all your personal possessions - furniture, clothing, appliances, electronics, tools, etc.
Where can I get inexpensive homeowners insurance?In order to get the least expensive homeowners insurance you need to go to an insurance comparison website so you can compare rates from a number of companies.
Visit http://www.LowerRateQuotes.com/homeowners-insurance.html or click on the following link to
get homeowners insurance rate quotes from top-rated companies and see how much you can save. You can get more insurance tips in their Articles section, and get answers to your questions from an insurance expert by using their online chat service.
The author, Brian Stevens, is a former insurance agent and financial consultant who has written a number of articles that answer homeowners insurance questions.
