Saturday, July 13, 2013

Homeowners Insurance Policy Benefits

Unfortunately, most new homeowners and many homeowners don't have clear idea about what it is and what benefits they can get from such an insurance policy.

Here is an important discussion on what home insurance is and how it can help homeowners while they are in a distressed mental and financial state. Whether you already own a home or are potential homeowners insurance leads, you must know these.

 Essentials of home insurance

If you have bought a home, you're needed to buy a home insurance to receive financing. Knowing the extent of the coverage would inform when you should file a claim and help you get the most out of your policy. Such policies are named and labeled depending on the degree of coverage. There are basically three types of home insurance plans and those are,

• HO-1
• HO-2
• HO-3

The former ones are affordable ones, but all they can do is insure the said property – not the policyholder's possessions. They also have other exclusions. While HO-3 policies are most popular form of property insurance as such policies provide coverage for both the house and its belongings.
Benefits of home insurance

Here are the basic benefits you can get from a home insurance policy.

1. Property protection

HO -3 insurance plans can be divided into two subdivisions – liability protection and property protection. Property protection provides coverage for some major items. Mainly, it covers the dwelling structure including the house itself and attached structures. Other structures may include a storage shed, garage etc. Personal property is also covered. Some of the plans offer reimbursement for only actual value of your property.  Others provide coverage for the replacement cost in case the policyholder's property gets damaged, irrespective of depreciation amount. Some plans provide coverage for theft and burglary or for loss of valuables, even if they are not the result of a natural disaster. Moreover, if your residence is damaged and you along with your family can't stay there while it's repaired, the living expenses would be covered under the property protection coverage.

2. Liability protection

 Another part of HO-3 insurance plans is liability protection. It provides coverage against claims made by somebody who gets injured on your premises. For instance, if your guest gets an injury while at your house, the medical expenses will be covered by the home insurance policy you have. However, if you don't maintain your property and anyone get injured owing to your negligence, you will be responsible for that.

How to file a claim

If something unexpected, which is covered by your policy, happens to your property, you need to file a claim to get compensated. The insurance provider is likely to send an adjuster to ensure that the amount you mentioned on the claim form is correct. Having inventory, images or other records would help you receive your claim easily and fast. After the value of damaged or lost property is assessed, the insurer is likely to offer you a settlement price.

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