HOMEOWNERS' INSURANCE
Homeowners’ insurance covers residential homes and the contents within. It is property insurance that combines various kinds of personal insurance protection, including loss or damage to the home of the insured and its contents and the insured’s personal possessions. It also includes additional living expenses incurred by the insured due to damage to the home by a covered peril, as well as liability insurance and medical payments for accidents that may occur on the insured property.
BASICS OF HOMEOWNERS’ INSURANCE
Homeowners insurance policies are detailed contracts that come in many coverage forms that vary greatly on what is and is not covered. Special attention should be given to what the policy excludes. For instance, most policies will exclude earthquake and flood damage. These coverages can often be “bought back” by endorsement or an additional policy. There are many endorsements that can be added to the policy, including jewelry, identity recovery, sewer and drain backup, and siding and roofing restoration coverage, as well as others.
The term of a homeowners policy is usually for one year. Premiums are based on several factors such as the protection class (distance from a fire department and a fire hydrant), type of construction (frame, brick, etc.),age of the dwelling, and safety features such as smoke and/or burglar alarms.
Premiums are also affected by whether the insured chooses a replacement cost or actual cash value policy. Replacement cost is what it would cost to rebuild the home today, not the market value of the home. Often there is a wide span between the replacement cost value and the market value of a home.
The vast majority of home buyers in America borrow money in the form of a mortgage loan. It is a condition of the mortgage that the buyer purchase homeowners insurance to protect the bank in the event the home is damaged or destroyed. Banks usually require that the first year’s premium be paid and the policy be in force on the closing date.
Call for a FREE Homeowners Insurance Quote if you’re in West Virginia or Ohio.
Contact Bryan Insurance today at either our Moundsville, WV office on 304.845.0121, or our Wheeling, WV office on 304.233.5907 and let an experienced Homeowners insurance professional discuss your insurance options for your home with you.