The Types of Homeowners Insurance You Should Use

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You have finally done it, you are content in your own home and well on your way to paying off that mortgage. However, did you know that there is one more step to accomplish after having moved in to your home? When you own a home it is important that you have fully covered all of your financial securities, and this means having sufficient insurance. A great homeowners insurance plan will provide you with a great sense of security and decrease much of the stress that comes with facing a disaster or hardship. Having insurance is a great way to really make sure you are covered financially in the event of a peril.

Most lenders require that you have insurance, however, is it the right insurance to cover your belongings and protect you?

The Many Advantages of Having a Superb Insurance Plan

Sold Home For Sale Sign in Front of New HouseWhen you have an insurance plan you are planning for an event that has not occurred yet, and may never occur. The event you are planning for is one of many perils one could face while owning a home: flood, fire, theft, and any number of natural disasters. Having an insurance plan will provide you with an opportunity to get money or other help following one of these perils. So, thinking ahead and buying an insurance plan now is better than not getting an insurance plan and having something awful happen. Finding the best homeowners insurance plan for you is one smart move in making certain that you and your family will be properly protected if a disaster strikes your home.

The Different Options You Have For Your Coverage Plans

You have many options to choose from when deciding on a homeowner’s insurance plan. One type of plan you can use is the Dwelling Coverage plan. This plan only covers the value your dwelling and not the land. You can also purchase a plan that will cover all of your personal possessions. Known as a Personal Property coverage plan this will cover the value of certain items inside your dwelling that have been either lost or damaged due to theft or a disaster. If you are renting out the space or renting out part of the space you also have the opportunity to receive a coverage called Loss of Use/Additional Living Expenses. This will provide you with the loss of income from the rented space. The last option for coverage is the Other Structures plan, which will protect all the other structures on your land that are not being used for your business.

The Two Policies Offered with Homeowner’s Insurance

When having the different insurance coverage plans mentioned above, you are also provided with two different types of policies that provide different services. These two insurance policies are an open peril policy and a named peril policy. Each of these policies will cover a certain range of perils and so you choose the one that works best for you. The open peril policy will cover any peril even if it is not specifically mentioned. So, you will be covered by theft, fire, flood, and any other natural or human-made disaster. A named peril policy is when each peril must be specifically cited in the agreement in order for it to be covered by the insurance company. So, you can receive coverage from natural disasters, theft, fire, man-made disasters, flood, etc., only if you choose it in your plan. Most of the named peril policies do not include the coverage from a flood, so this is one option you should consider getting extra coverage for. You will need to evaluate your environment and the typical weather patterns of your area. Another option is to talk to your neighbors and see if there has ever been a flood issue, and better yet you could talk with the previous home owner about flooding to see if coverage is necessary. Both the open peril policy and the named peril policy have great benefits to offer. Usually the open peril policy charges a higher premium, so this is better suited if you wish to be covered by everything and/or foresee the possibility of many problems occurring. The named peril policy is great if you want a lower premium cost and can only foresee the possibility of some problems occurring.

Making Certain an Excellent Insurance Company is used

After you have faced a peril in your home you must worry about fixing you home and recovering any lost items. Also, you must think about alternative living arrangements if the damage is extremely high. So, it is very important that you have found an excellent insurance agent who will decrease some of your stress and worry. An independent insurance agent will make filing a claim simple and worry free in addition they work for you NOT the insurance company. They will process your claim quickly and swiftly and will ensure that you are properly taken care of.