If you have a mortgage on your home, you have a homeowner’s insurance policy. Your mortgage holder probably requires it. Do you know, though, what your homeowner’s insurance policy does for you? It protects much more than the physical structure of your home.
Homeowner’s insurance policies typically offer coverage for your personal property. If your home is damaged in a storm and your furniture is ruined, your insurance company should give you enough money to replace the furniture. Jewelry, electronics equipment, and even clothing are covered, too. Many times, the coverage is written to be equal to a percentage of your home’s value. If you have some expensive, special property, though, be sure to speak to your insurance agent about it. You may need to bump that coverage amount up.
Homeowner’s insurance policies usually include personal liability coverage, too. Let’s say that your neighbor slips and falls on the sidewalk at your house. Of course, you feel horrible that he’s hurt, but you’re financially devastated when he tells you that he’s broken his arm in the fall and needs surgery. Fortunately, this type of incident is exactly what personal liability coverage is for. Your insurance will pay for your neighbor’s medical bills once you’ve paid the deductible amount. Please note, though, that if you have a home business, there may be different rules at play here. Speak to your agent about other insurance needs you may have.
Finally your policy will also include coverage for the actual structure of your home. If a fire ravages your home, your insurance will provide enough money to rebuild your home. You will also usually have a benefit that provides a place for you and your family to stay while your home is under construction. Again, keep your agent in the loop if you make any significant changes to your home. An increase in home size may require you to bump your coverage up to ensure that you can replace your home as it is.
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This is very useful information. People should be aware, though, that coverage on a mobile home may be quite different and include much less. If you’re living in one be sure you know what your insurance covers and keep emergency money put aside.