Any financial loss occuring due to theft, fire, windstorms and other such perils listed under your policy needs home insurance to protect your home. In order to cover your home, it’s belongings and personal property, be a tenant, land lord or home owner needs a home insurance. Every person needs protection against liability, if any accidents occur, some one is injured or any property damage.
- Homeowners: Shielding both home and personal property
- Tenants: Protecting only your personal belongings and not the building.
- Other parties: Protection against liability for injuries caused to people or accidents occurring within the property premises
The better the policy is designed with required coverages, less you will be paying out of your own pocket to cover the disasters. When your house is under mortgage then your lender might ask you to have more coverages than required. It is always better to check with your agent or the insurance company and then decide on coverages and amount required to cover your home, content and personal belongings.
How Much Coverage Do You Need?
- Covering your property and belongings: To cover personal property, valuables and other belongings with better coverages without burning a hole in your pocket.
- Self protection: Gives enough liability coverage to protect against legal actions resulting due to your negligence or other hazards that might occur on your property.
- Lender requirements: Your mortgage lender will ask you to cover the house for replacement cost of dwelling or mortgage amount.
- Policy requirements: The insurance company might impose coverage requirements for replacement cost of your house. Most of the plans will actually limit at 100% of replacement cost. However, few standard plans limit to 80% of it.