Anyone who owns a home will, at some point in their ownership, come to realize the importance of their homeowners insurance policy. Homeowner's insurance policies exist to protect both the homeowner and the bank lender, at least for the life of the home's mortgage. Basic Policy The basic homeowner's insurance policy covers damages done by such disasters as fire and severe storms, including hurricanes and tornados. Damage to your home, property, and possessions are typically the basic elements covered. However, the amount of coverage you carry for each is perhaps the most important aspect of the plan. Possessions that are lost due to theft are also generally covered, up to a certain percentage of the insurance policy. Liability coverage is another basic element of a general homeowner's policy. Liability protection covers the policy holder for damages done to anothers home or property, even the damage done by one's pet can be included. However, this is only damage done to another's property. The homeowner's policy does not cover damage incurred by the policy holder to his or her own property or possessions. Covering Yourself Many consumers fail to recognize the pit falls that are inherent in many homeowners insurance policies. For the most part, it is generally known that the basic homeowners insurance plan does not cover flood damage. While most homeowners consider themselves safe and on dry ground the majority of the time there are many who are at risk. Whether you realize it or not, you might actually live in a flood zone. And then again, even if you do not, when severe disaster hits, such as a hurricane that generates dangerous and inevitable flooding, you might become the unwitting victim of flood damage and the holder of a policy that fails to cover your damages. Homeowners must be wary when purchasing their homeowners insurance. Make sure you buy from a reputable insurance agent and do not make your policy decisions based solely on getting the bargain basement price. A bargain basement homeowners insurance policy will likely fail to cover you when a real disaster strikes. Just a piece of paper on which you have spent money, but now fails you. Buy wisely. Your home and property are your biggest investment and must be regarded as being worth the added protection. Discuss with your insurance agent all the possible circumstances that are truly realistic for your situation. Make sure your general homeowners policy carries plenty of coverage that allows for a total rebuild of your home if necessary and replacement of important possessions. Buy a standalone flood insurance plan if you are advised to do so. Documentation Make itemized lists of possessions. Take photographs of treasured family heirlooms and items you would like replaced in like value if they were to become stolen or ruined in a fire or storm. Videotape the rooms of your home, making a visual document that literally walks through your home and property. Then make sure to keep such important documentation safe either in a safety deposit box or in a fire proof safe in your home. Such documentation becomes the only proof when property and possessions are ruined or stolen. |
