Homeowners insurance is akin to having a home safety net. Accidents can happen at any and all times and one can never be prepared for accidents as by definition they are a surprise. An example of a nasty surprise could be a stove fire started by spilled grease on a hot stove. In the blink of an eye such fires can spread throughout the kitchen and next thing you know the entire house is burning. Fire damage can cost multiple thousands of dollars and, without insurance, one would be confronted with enormous out-of-pocket repair bills.
Homeowners insurance is what covers a home against any such mishaps that can happen in or to the home. Homeowners insurance protects the homeowner from natural catastrophes such as fire, weather, and other naturally induced events. Liability can be included in a policy as well, which helps protect the policyholder should someone be hurt on the property. For example, if a pet bites a visitor or an acquaintance slips in your home, you are protected.
Policies also can cover personal items in your home, and can also have a provision to provide lodging should your home be rendered uninhabitable as a result of rebuilding or repair work in the aftermath of some covered calamity.
Homeowners insurance is not required legally, however, a bank will almost always mandate homeowners insurance before one is approved for a loan. Even if you already own the home in full, you will still be wise to seek the protection of coverage. A home is usually the average person’s largest investment by far- why not protect it? It makes perfect sense to be sure you are fully insured with proper coverage.
The first thing a homeowner should do in the event of some problem is get in touch with his or her insurance agent. A professional claims adjuster will visit the property and ascertain the level of compensation needed. If the adjuster concurs with your filed claim, recommended action will be suggested followed by an offer of a settlement. Sometimes a homeowner will appeal the determination if he or she feels the compensation amount is not satisfactory.
Keep in mind that most policies do not cover floods or earthquakes. Supplemental coverage would be in order to receive extra coverage for floods or earthquakes. Always read your policy details in full to understand all that it covers.