Homeowner’s Insurance Basic Needs

Homeowners insurance is needed because a home is a big investment, often one of the largest purchases most people make in a lifetime. People want to protect the value of their precious property. Homeowners insurance is a contract between a homeowner and an insurance company. As long as the owner pays the required premiums and meets the other policy requirements, the insurance company guarantees to reimburse the owner for any losses incurred due to natural disasters or human-caused damage.

An essential homeowner’s insurance policy protects the owner against any property damage that results from things like fire, lightning, wind or hail storms. It can also provide for motel and food costs if you are forced to leave your home while such damages are repaired.

A standard policy, however, does not cover flood or earthquake damage. Because these issues are usually specific to certain regions of the country and can cause extreme damage, these can be purchased as separate policies. If you live in a flood zone or near an earthquake fault line you may be required by your mortgage company to carry these protections.

A basic policy will also protect homeowners against loss from theft or vandalism as well as reimbursement for personal property destroyed in natural disasters. It will also provide for something that many people may not normally associate with home protection, liability coverage for lawsuits brought against the owner by people who were injured on the property. It incorporates the cost of legal defense up to the allowed policy limit. Additionally, most policies will have a provision that will cover the basic medical expenses for the parties.

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