Your home is the most important investment that you make in your life. It is important to protect your investment unexpected losses by purchasing adequate insurance for it.

Homeowner insurance policy provides financial protection against losses which at times could be catastrophic. A standard homeowner policy provides coverage for your home (main dwelling), your personal property inside your home and other structures not attached to your main dwelling such as a fence, a pool a gazebo and so on.

It is a package policy that contains several components. It includes family liability, damage to the main dwelling, other structures, personal properties (caused by a covered event), medical coverage to your guest, loss of use, water backup and so on. For example, it covers your liability for any injuries and property damage that you or your family members accidentally cause to other people. Also, this includes but is not limited to damage caused by your household pets others.

Some damages are excluded from standard homeowner policy offered by most insurance companies. These damages include floods, earthquakes and maintenance cost, wear and tear, mechanical breakdown and so on. You must buy separate policies for flood and earthquake coverage.

Why do you need homeowners insurance?
Catastrophic events do not occur all the time and when it happens, it does not warn you in advance. It comes unexpectedly and without warning.
• If your home is destroyed by fire or damaged by a natural disaster, you’d need money to repair or replace it.
• If a guest in your home is injured, your homeowner policy medical coverage pays for its medical expenses, doctor’s visits and hospitalization though it is not a huge amount.
• In case, you are a victim of theft and vandalism, it can reimburse you for certain losses of personal properties or pay for repairs. There are restrictions on the amount of payment on some personal properties such as cash, jewelry, gold, silver, antiques, etc. For more information, please refer to your policy or talk to your agent.
• You have a mortgage on your home, your lender will require insurance.
• The most important section of your policy is the Exclusion section; please read this section carefully to make sure what is covered and what is not.
Again, for more information about your homeowner policy coverage, please contact your agent. Please read your policy carefully.
Key questions to ask your agent about your homeowner policy coverage:

How much will it cost to rebuild my house if it is totally destroyed?
• How much is the cost to replace my belongings if they are damaged or destroyed?
• Does the insurance company have a good reputation for customer service? Is it known for paying claims fairly and promptly?
• What discounts are available? (Ask about multiple policies, security system, fire resistance, new roof, early signing discounts, and so on.)
• What’s the process for filing and settling a claim? (Ask who to call and what happens after you file a claim.)