How To Taking Care Of Your Home: Home Insurance 101

Home insurance (or homeowners insurance) is a type of property insurance covering losses and damages to a residence. Generally, policies cover interior and exterior damages, alongside theft or loss of possessions. It does not require ownership and can be granted by landlords to maintain the renter’s insurance coverage.
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Not only will it keep homes safe, but it will also help owners get a loan relatively fast. Below are some of the things people need to keep in mind about home insurance.

Standard Provisions of Home Insurance Policies
Home insurance policies are heavily customizable. However, standard provisions are provided to give a basic idea of what the insurer will cover.

1. Interior and Exterior Damage
   Insurers cover damage caused by fire, vandalism, and natural disasters (e.g., hurricanes, lightning). They will compensate the insured for repairs and even for rebuilding. However, the coverage for damages caused by floods, earthquakes, and low home maintenance does not usually come in these policies. Some insurers require separate custom provisions (riders) for these benefits.
   
   The destruction of possessions, including furniture and appliances, is covered if they’re destroyed during the occurrence of insured disasters. 
   
   
2. Liability Coverage
   Liability coverage provides the protection needed when other people have filed lawsuits. This provision also includes the safety of pets. Insurers can pay medical expenses and reimbursements, depending on the situation.
   
   
3. Rental Fees During Repairs and Rebuilding
   Additional living expenses, like rent and other costs incurred during repairs and rebuilding, are covered by home insurance. Although this provision has limits, the insured can expand these limits if they are willing to pay more.

Types of Home Insurance Coverage
There are three types of home insurance coverage, depending on their levels of protection. Of course, more expensive policies give better coverage compared to less expensive ones.

• Actual Cash Value 
  It refers to the coverage, which includes the house’s cost and the belongings minus the depreciation. 
• Replacement Cost Policies 
  These policies include the actual cash value of the home and belongings without depreciation. It means that the insured can make repairs or completely rebuild the house up to its original value.
• Extended Replacement Cost Policies 
  They are a type of inflation-buffer policy that covers all costs incurred when making repairs or rebuilding. With this policy, the insured is allowed to go beyond their policy limit. 

What’s Not Covered
Although there are occurrences that home insurance covers, it is essential to know what it cannot. Typically, losses of possessions are covered by home insurance policies. However, occurrences like “acts of God” and “acts of war” are excluded. 

Conclusion
Home insurance policies exist to safeguard homes from damages and keep families safe. Whether or not someone owns a house, protection is essential. Being aware of available home insurance policies can help cut down costs in the long run. 

At Hayek Insurance, we aim to provide comprehensive insurance policies that make your life easier. We want to help you get the insurance that fits your needs. You can get more information about our products and services by calling our agency at (805) 496-8835. Get your free quote today by CLICKING HERE.