Most banks or home loans require that homeowners carry homeowners insurance. Even if your home is paid off, homeowners insurance can still be great protection for your investment. There are a variety of types of insurance you can get and each policy can be personalized depending on your home and possessions inside of it. However, all policies have basic coverage and you can even get a policy that is only the basics.

Basic homeowners insurance policies contain coverage from damage against many common things. Generally it will cover any damage to your home and its contents caused by theft and vandalism, natural disasters such as wind, hail and lightening, automobiles or aircraft, explosions and plumbing leaks, riots or civil unrest and fire or smoke. Additionally, basic homeowners insurance policies cover a general liability and compensation for housing should your home become uninhabitable.

Keep in mind though; every policy has an exception and limit to the coverage it provides. Make sure you thoroughly examine your homeowner’s policy so you can understand what is covered and what is not. Basic coverage may not always be sufficient for your needs.

Finally, basic homeowners insurance does not cover certain property damages such as floods and earthquakes. To be covered for these disasters you’ll need additional coverage. If you live in an area prone to these types of disasters you should look into that additional coverage.

This entry was posted on Thursday, July 31st, 2008 at 10:16 am and is filed under Home Insurance. You can follow any responses to this entry through the RSS 2.0 feed. Both comments and pings are currently closed.