Life and health may be most precious but there is no denying that life and health are not of much use unless you have a roof on top of your head. Shelter is one of our most essential needs. Merely having shelter over one's head is not sufficient. Confidence that family will always enjoy protection from elements no matter what happens is essential. Homeowners insurance in US helps a lot by
- providing financial compensation to repair or rebuild a house damaged for specific reasons
- providing protection against natural and man made disasters
- helping the home owner secure his or her life time investment in the property better
- providing living expenses for the family when the home is being repaired/renovated/rebuilt
- Boosting the homeowner's self esteem and making him or her look like a responsible citizen by choosing homeowners insurance in US.
How Does Homeowners Insurance In US Work?
The homeowner signs a contract with a home insurance company offering to pay premium and enjoying promise of financial compensation in event of damage to property and its contents. The process of obtaining the policy covers
- contacting a home insurance company and providing necessary details
- preparing an estimate of value of land and dwelling along with the contents or possessions owned
- determining the type of coverage required – replacement value, actual cash value or enhanced replacement value
- determining the deductible payable
- completing documentation, formalities and premium payment
- receiving proof of insurance, which must be stored properly and carefully at all times
Advantages of Homeowners Insurance in US
It does not matter whether your house burns down due to a riot, destroyed by thieves, or collapses due to a windstorm or lightning attack – you will always have money in hand to restore your house to its original condition. Other advantages of homeowners insurance in US include
- Protection from liability owed to third parties who have suffered injuries in your house due to your negligence
- Ability to pay medical expenses incurred by others due to injuries caused by your pet in your house.
- Enjoying peace of mind that your family will not end up on the streets without a roof on their heads no matter what happens to your house.
Watch Out For Homeowners Insurance in US Risks
No insurance policy offers unlimited coverage. Homeowners insurance in US is no exception. Standard homeowners insurance in US, no matter how comprehensive, never provides protection from floods. Other points to watch out for include
- Whether the policy offers money equivalent to depreciated value of the asset; replacement value; or market value.
- The deductible amount committed. Not paying the deductible will prevent policy coverage from getting activated
- This is not a disadvantage per se but homeowners insurance in US premium paid without filing a claim will be lost forever.
Despite drawbacks, the importance and need of this form of insurance cannot be overemphasized. Ignoring home insurance can turn out to be a huge financial and personal mistake.