What is homeonwer’s insurance?
Homeowners insurance provides you with financial protection against disasters. A standard policy insures the dwelling itself and the things you keep at it.
Homeowners insurance is a packaged policy. This means that it covers both damage to your property and your liability or legal responsibility for any injuries and property damage you or members of your family cause to other people. This includes damage caused by family pets.
Damage caused by most disasters is covered, but there are exclusions. The most significant are damage caused by floods, earthquakes, and poor maintenance. You must purchase two separate policies for flood and earthquake coverage. Maintenance-related troubles are the homeowners’ responsibility.
The cost of homeowner’s insurance often depends on what it would cost to replace the home and which additional endorsements or riders are attached to the policy.
Why do I need home insurance?
When you have a mortgage, your lender wants to make sure your property is protected by insurance. Even if you don’t have a mortgage, homeowner’s insurance can protect your investment. Also, keep in mind that a home warranty is not the same as home insurance.
What is hazard insurance?
Protects a property owner against damage caused by fires, severe storms, earthquakes, or other natural events. As long as the specific event is covered within the policy, the property owner will receive compensation to cover the cost of any damage incurred.
What is liability insurance?
The personal liability coverage within your homeowners policy provides coverage for bodily injury and property damage sustained by others for which you or your family members are legally responsible. This would include things like dog bites, slip and falls, pool accidents, etc.
Preparing to purchase home insurance?
Talk to your insurance agent about the policy limits. Will they be enough? Do you own a pool, expensive artwork, entertain a lot? You might need to purchase additional coverage. Are you in a flood zone? Even though Albuquerque is a desert, there are several parts of town that are in a flood zone.
Take inventory. Prepare a detailed list of everything in your home. Take photographs and videos. Save receipts for high-ticket items. Store a copy off the premise in a safety deposit box, for example.
Remember to review your insurance annually. If you purchase additional high-end items, remodel the home, or get a pet, you might not have sufficient coverage.
If you have any questions about homeowner’s insurance or about selling or buying a home in metro Albuquerque, be sure to contact me today!
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