Your Guide to Homeowners' Insurance

If you own a home, you should have a homeowners' insurance policy to protect your investment. In addition, it can help in the event of many types of lawsuits. If you would like to know more about homeowners' insurance, keep reading.

What Damages Does Homeowners' Insurance Cover?

Homeowners' insurance policies are either all peril or named peril. All-peril policies typically cover the most common types of damage, including theft, fire, vandalism, and much more. Ultimately, all-peril policies cover everything that is not specifically listed in the exclusions section. On the other hand, named-peril policies list all covered damage. Anything not specifically stated in the policy is not covered.

For the most part, no policy will cover damage related to lack of maintenance, neglect, and damage you caused on purpose. In addition, few policies cover earthquakes, floods, mudslides, and sinkholes. Luckily, you can purchase additional policy riders to better protect your investment.

What About Lawsuits?

As a homeowner, you have a duty of care to prevent injury to people who visit your home. This typically includes people you invite over like friends and family, but it also includes people visiting for valid reasons like delivering packages. Trespassers, however, are not usually owed a duty of care except in rare cases, such as cases involving children.

If someone visits your home and breaks their leg on a neglected set of stairs, they can sue for injuries. Luckily, if you have homeowners' insurance, your policy covers many personal injuries on your property. Many policies also cover the cost of your defense if you get sued. Homeowners' insurance will not cover you if you purposely hurt someone, such as attacking them without legal justification.

How Much Does Homeowners' Insurance Cost? 

Like any form of insurance, you need to pay a monthly premium, but the price can vary drastically based on location, company, house value, and much more. Typically, all-peril policies are more expensive than named-peril policies since they tend to provide more coverage.

Luckily, there are many ways you can take advantage of discounts. One of the best ways to lower your premiums is by reducing the risk of damage. Installing a home security system or cameras can reduce the risk of theft and vandalism. Of course, you can also save by bundling all your insurance with one company.

When Do You Need Additional Policies?

As stated before, if your insurance policies don't cover everything you want, you can purchase a policy rider. This is a good idea if you live an in area prone to certain disasters.

While homeowners in California may want to purchase an earthquake rider, Chicago residents, however, may want riders more associated with coverage for water and ice damage. If you want to purchase flood insurance, you must live in an NFIP community, which includes homes and businesses in high-risk flood zones.

You may also want to purchase a rider if your maximum isn't high enough. The insurance carrier will not pay beyond your max limit, but adding other riders can ensure you'll get all the money you need.

In addition, you can get riders that better protect expensive items like jewelry. Many basic policies only cover about $1,000 for jewelry, so if you have a piece that is above the limit, consider a rider. Similarly, if you have expensive art, antiques, rugs, furs, or guns, consider a rider.

Owning a home is rewarding and a great investment, and homeowners' insurance can help you protect your investment. With many companies, you can even bundle various types of policies and save big bucks. If you would like to know more or you want a quote on insurance, contact us at Metropolitan Insurance Service Consultants, Inc, today.