Home Insurance 101: How It Works

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In this article, you will everything you need to know about the basics of home insurance policy. Even if you already have one this will teach you how and why you need home insurance policy today. Every home owner needs home insurance policy. It is not appropriate for houses being rented to others or an investment property.

There are six parts to your homeowner’s insurance policy. It all begins with the dwelling amount which is called the coverage. The dwelling amount should be a replacement or the rebuild cost. If your house burns to the ground or gets hit by lightning, how much can do you need to rebuild it again?

The next important part of this article is considered the ‘other structures’. Do you have a barn? Do you have a garage?Is the garage available? Do you have a shed? Do you have a swimming pool? These buildings are part of ‘other structures’. For other structures, the default is always 10% of the coverage. Your other structures will automatically get $40,000 for free if you have a dwelling with the value of $400,000. You can buy it if you need more and if you don’t there’s no credit for taking it off.

The next thing is personal property. The amount is typically 50% of the original dwelling amount. This is defined as your ‘stuff’. Your ‘stuff’ means if you were to move you would take with you. It includes rugs, drapes, clothes, all your electronic devices, and all of that stuff. Typically it’s 50% but some companies offer up to 70% of no extra charge. Know more about the Auto Insurance Holladay.

The next important thing here is the loss of use. A house that is made unusable or uninhabitable while it is being fixed is considered the part of loss of use for this part. The typical value for this coverage is 20% This specific case it is $80,000. You can send your laundry out, eat your meals out, and stay in a hotel if you need to with this amount of $80,000 which will be available for you to use to love elsewhere.

Liability coverage is the next coverage. You can use this amount if you get sued. If you’re cutting down a tree with your chainsaw for the first time and it lands on your neighbor’s car or if your dog bites a neighbor are some of the examples. This is for that type of things where you’re negligent and someone sues you. More commonly today, $500,000, or even a million are what most people choose although your limit is at $300,000 are common.

And finally, medical payments, it’s usually a much smaller number or sometimes a thousand dollars up or as high as $5,000. This is considered as a ‘goodwill’ coverage.

Homeowner’s insurance policy from http://fortisinsuranceagency.net/personalized-insurance/mobile-home-insurance/ works using these six parts.

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