Home Insurance

You will be liable for paying to rebuild your home if you experience damage from flood, fire or a natural disaster. Purchasing home insurance can replace your personal possessions or help you if you are liable for damage to someone else’s property or an injury sustained on your property. In addition, you could also get coverage to take care of court fees, food and lodging if you have to abandon you home. Speaking with an insurance agent from Keats Insurance Agency in Baldwin can help you decipher which type of insurance best fits your life and budget.

Purchasing a home is one of the largest purchases anyone will make in their life, both financially and emotionally, and it is important to keep the investment protected. Buying home insurance can be a great asset to make sure that you are protected in the scenario that your home is destroyed or damaged.

Homeowner’s insurance can vary from simple liability coverage to larger policies that cover your home’s structure and personal property. There are also special policies that insure your home in case of flood, fire, or earthquake.

Your insurance company will make a huge impact in determining how your home insurance coverage functions. The most fundamental types of homeowner’s insurance policies are listed as follows:

HO-1 Policy

An HO-1 homeowner’s insurance policy provides you with fundamental coverage. It deals with harm caused by certain instances, including fire, lightning, windstorms, hail and explosions. These programs also usually cover damage triggered by civil disturbance and volcanic eruptions. Since this policy is very restricted, many states don’t usually offer it to customers.

HO-2 Policy

This policy safeguards you from 16 types of events, including damage from theft, vandalism and riots. An HO-2 policy will take care of hail damage, windstorm damage and broken glass, along with smoke damage and wreckage caused by a vehicle. If your pipes rupture or your roof collapses, this policy will also cover that.

HO-3 Policy

HO-3 policies cover all possible reasons of damage to your property and asset loss, with the exception of explicitly listed events. Exclusions contrast from policy to policy, so read yours meticulously to recognize what is going to be excluded.

Basic vs. Extra Coverage

Fundamental homeowner’s insurance typically takes care of the money it will cost to restore damaged property, as well as the auxiliary costs if your home is damaged. It also covers your belongings, but the items inside your house are only covered for up to 40 percent of the home’s insured value. Supplementary coverage will defend you against earthquakes and floods, as well as covering the loss of individual property like jewelry, computers and cameras.