Daniel Stewart

What Does Home Insurance Cover?

Home insurance is something you need to purchase if you own a home. Mortgage companies typically require it until you've fully paid off your property. But even if you don't owe anything, insurance can protect you from major disasters and unplanned events.

Your home is the biggest purchase you'll ever make in your life. Getting insurance protects your bottom line.

Every policy is different, and you need to do your research to get the best home insurance quote for your needs. But here's a taste of what most policies cover.

Fire Damage

Unfortunately, house fires are more common than most realize. Over 350,000 of them occur in the United States every year. Insurance policies will cover the costs to repair the damage if your home goes up in flames. They'll also pay for lodging if your house becomes unlivable.

Insurance protects you from paying for the total recovery cost after a fire.

Natural Disaster

Many parts of the country are at the whims of Mother Nature's fiercest destructive forces. For example, homes in Florida are subject to hurricanes every year. Meanwhile, those in Kansas might experience damage from a tornado. Homes nationwide can experience flooding, lightning damage, wind damage, etc.

Whatever the case, home insurance can cover the costs involved with repairing the damage. In cases of fire, insurance companies will also pay for living expenses if your home is not livable.

Liability

Have you ever wondered what would happen if someone who doesn't live at your house experienced an injury on your property? For example, they could trip over a stump in your front yard and break a leg. If that were to happen, you're liable for their injury. You're at risk of being on the other end of a lawsuit!

Fortunately, home insurance can cover you there, too. Remember to pay attention to liability coverage when shopping for the best home insurance quote. Great plans will cover medical expenses and legal fees associated with injuries, getting you off the hook for potentially thousands or millions of dollars.

Author Resource:-

Daniel Stewart has been helping people with their money management and personal finance with over 15 years' experience in business finance. You can find his thoughts at annuity plans blog.