Understanding Homeowners Insurance
All new home buyers need to have an understanding of homeowners’ insurance.
Almost all mortgage providers insist on insurance cover being in place to protect their investment. Should a house they have financed be destroyed, banks and lenders would suffer from a significant financial loss.
Homeowners insurance is important even when a person does not own their own home. In some cases landlords require their tenants to have their own cover, and in all cases it is responsible and sensible to have insurance protection in place.
Under a homeowners’ insurance policy, the insurer covers costs that relate to damage occurring to the interior or exterior of the property (depending on the cause of the damage), personal belongings that are lost or damaged and personal liability for damage and injuries sustained that are caused by the person who takes out the insurance or their family. In addition, insurance providers may cover the costs of a hotel or other house while the property is being repaired or rebuilt.
It is important to understand that not all insurance cover is equal or the same. Typically, the least expensive insurance cover options offer the least amount of cover and protection.
Home insurance premiums can vary greatly and be determined by an extensive range of factors.