Who Is Offered?

Home insurance offers various types of financial protection to you depending on the specific coverage that you purchase. The most common financial benefit associated with a homeowners insurance policy relates to physical damage to the home. If the home is damaged or destroyed by specific perils, the insurance company may pay for repairs or for the home to be reconstructed. Common perils that may be included are windstorm damage and fire. For some perils, you may need to specifically add additional coverage to your policy, such as for flood damage and earthquake damage. There are also usually other components to a home insurance policy, such as to replace the personal property in the home and to cover liability-related expenses.

There are two primary expenses associated with home coverage. The first expense is the premium. This is the regular cost of having coverage regardless of whether you file a claim against your policy or not. In many cases, the premium is paid on a monthly basis. The second expense is the deductible. This expense is only paid when you file a claim. The deductible amount can be adjusted slightly by the homeowner and adjusting it has a direct effect on the premium. Remember to consult with your lender about minimum coverage requirements before buying coverage, and consider the benefits associated with buying more coverage than what is required.