The repercussions of owning a home without insurance can be very risky. If damages occur, the responsibility will be yours. Purchasing home insurance can restore your personal belongings or protect you if you are responsible for damage to someone else’s property or an injury sustained on your property. Furthermore, you could also obtain coverage to handle court fees, food and lodging if you have to abandon you home. Discussing options with an insurance agent can help you choose which kind of insurance best fits your life and budget.
When you purchase your first house, you’re making a momentous financial and emotional investment. Home insurance can be a great asset to make sure that you are protected in case your house is destroyed or damaged.
Homeowner’s insurance can vary from more comprehensive policies to liability coverage that provides coverage for your personal property or the structure of your home. Home insurance from Keats Insurance Agency in New Hyde Park can also include special policies that protect your home in case of flood, fire, or earthquake.
Your insurance company will make a huge impact in determining how your home insurance plan functions. The most fundamental types of homeowner’s insurance policies are listed as follows
An HO-1 homeowner’s insurance policy provides you with basic coverage. It takes care of harm caused by particular events, including fire, lightning, windstorms, hail and explosions. These policies 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.
This policy safeguards you from 16 types of events, including the resulting destruction from burglary, vandalism or civil tension. An HO-2 policy will take care of hail damage, windstorm damage and broken glass, as well as destruction caused by smoke and any damage induced by a vehicle. If your pipes burst or your roof disintegrates, this policy will also take care of that.
The HO-3 policy covers all possible reasons of damage to your property and belonging loss, with the exception of specifically listed events. Exclusions vary from policy to policy, so read yours carefully to recognize what is going to be excluded.
Basic vs. Extra Coverage
Basic homeowner’s insurance typically covers the money it will cost to repair damaged property, as well as the restoration costs if your home is wrecked. 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. Extra coverage will defend you against earthquakes and floods, as well as dealing with the loss of personal property like jewelry, computers and cameras.