Homeowners Insurance Policies
For most people, their home is their most important investment. One of the best ways to protect that investment is to have HOMEOWNERS insurance. This type of insurance protects your home from potential risks such as fire, theft and liability claims arising from injuries that occur on your property. Based on the amount of insurance purchased, the insurance will pay a certain value to the insured to help them repair and restore their home following the damage.
The goal of a HOMEOWNERS insurance policy is to protect the homeowner from certain damage that occurs to the home or the total loss of the home. By purchasing an insurance policy, a property owner can have the peace of mind that their investment will be protected.
There is a normally a very simple process by which a home insurance policy works. When damage has occurred to the insured property, the homeowner will file a claim with the insurance company. The insurance company will send an adjuster to assess the damage and estimate how much the repairs will cost. Once the adjuster determines the claim amount, a check will be issued to pay for the damages. Normally, this check would be issued to the insured. However, in some cases, the check can be issued to both the insured and the company who will be handling the repairs. In situations where the home is a total loss, a check will be issued to the lienholder of the property to pay off the loan if there is debt on the property. Any funds leftover after the home is paid off will be issued to the homeowner.
There are different types of home insurance policies that offer different types of coverage. There are very basic dwelling and fire policies that mainly only offer coverage for the structure of the home. More comprehensive policies cover the structure of the home as well as the contents inside the home. In addition, they allow you to schedule certain items of high value that require special protection. There are also different types of policies based on the kind of home covered. For example, a policy that covers a mobile home is distinctly different than a policy that covers a stick-built home.
The greatest benefit of home insurance is the protection it offers a homeowner from the loss of their home. In the event your home burns to the ground, it is comforting to know you have an insurance company that will stand behind you and help you replace your home and belongings.