Homeowners insurance is something which almost everyone has but not everyone fully understands the ins and outs of this insurance types. We are regularly receiving large amounts of questions from our readers about homeowners insurance which is why we have industry expert Jared Seyl on hand to put some of the questions to bed. Jared has spent over a decade in the insurance business and he is the perfect person to answer your burning questions. Without further ado then here are some of your burning homeowners insurance questions answered.
Do I Need Insurance For My Home?
There is no legal obligation for you to have homeowners insurance on your home but it is most certainly something which you will need. It is not only about making sure that if anything happens to the property that you will be properly recompensed, it is also to protect you in the event that someone is injured in your home as a result of an incident. If this happens then your insurer will help you to defend the case.
What Does It Cover?
Each policy is of course different from the next depending on what your individual requirements are and what insurer you decide to use. With this being said there is a minimum which an insurer will protect you against and this is something that doesn’t change no matter how you use. Here are the minimum coverage options in terms of damage.
- Fire or lightning
- Falling objects
- Weight of snow/ice/sleet
- Freezing infrastructure
How Do They Decide Value?
There are 3 main approaches which an insurance company will use in order to determine the value of your property.
- Actual Cash Value
This is used to work out the replacement cost of the item minus depreciation.
- Replacement Coverage
The cost of replacing the item without making any reductions for depreciation, these items will however have a maximum limit attached to them.
- Extended Replacement Cost
This gives you the money for replacement with a small limit in place which covers additional costings. This will be used in a situation whereby there has been an increase in costs such as construction.
Does it Cover Items Away From The Home?
Yes, your coverage will cover items within the home but if you take them out of the home there will still be cover. For example if you take an item abroad with you and something happens, you can still claim for this on your homeowners insurance.
Are Visitors Covered?
If something happens to the possessions of a visitor in your home they will not be covered under your policy as they have not been mentioned on the original policy. If that person does ave their own home insurance policy however, they will be covered on that and they can make a claim through their own provider.