A home is a valuable investment. Whether you own it or are renting it, however, you should consider insurance. However, there are many types of insurance to consider when protecting your home. If you would like to know more, check out these four types of home insurance to consider.
1. Standard Homeowners Insurance
If you own the house, standard homeowners insurance is a must, and it protects you in multiple ways. First, it usually covers common disasters that can damage the outside and inside of the home. This type of plan is an all-risk plan, and it covers common disasters like fire, lightning, etc. It also will provide coverage for items inside the home that are damaged due to the covered disaster. If you have an all-peril policy, everything is covered except what is included in the exclusions.
Other people choose a peril-specific plan. This type of plan only covers the types of disasters are that listed. These are more popular if you live in an area with a particular threat, such as an area with high levels of vandalism.
In addition, homeowners insurance protects you in the event of an injury. If someone gets hurt while on your property, they may be allowed to sue. If this happens, your homeowners insurance policy will cover the cost of the settlement, so you don’t have to go bankrupt.
2. Flood Insurance
Some types of disasters are rarely included in any general homeowners insurance policy. Flood damage, in particular, is usually excluded. Therefore, if you want to insure your home against water damage from flooding, you may need to get a rider added to your policy.
Some standard homeowners policies may cover some water damage. For example, if a windstorm knocked a big branch off a tree, and the branch caused a hole in your roof, insurance may cover the associated water damage. However, if the house floods from a flash flood or rising groundwater, standard insurance isn’t enough.
3. Renters Insurance
If you rent your home, you don’t need to worry about insuring the home and property, but you should consider renters insurance. The number one reason to get renters insurance is that it covers your belongings in the event of a disaster. The landlord’s homeowners insurance won’t protect you if your property is damaged, so you will have to replace them out of pocket. For this reason, some landlords require their tenants to have renters insurance.
In addition, renters insurance may provide money for housing after a disaster. If the disaster makes the house unlivable, or the homeowner needs you to leave for repairs, renters insurance may provide money to pay for a hotel.
4. Vacant Risk Insurance
Homeowners insurance covers homes that have people living in them. If you have a vacation house or a second home that you don’t use as often, homeowners insurance may not be the right choice. In many cases, these policies discontinue after the house has been vacant for about 60 days. Vacant home insurance is reserved for homes with little to no personal property, and the utilities are often off.
If you keep property in the house and it is suitable for occupation, you may need to consider unoccupied home insurance instead of vacant home insurance. Regardless, both help protect these high-risk types of homes.
Homeowners insurance is a must for everyone who owns a home. However, if you are renting, you need to protect your own belongings with renters insurance. Luckily, insurance providers provide multiple policy options, and you may even be able to add riders. If you would like to know more, or if you need more insurance, contact us at Family Insurance Centers.