Homeowners Insurance

Don't get caught without it!

Many times the home owner or prospective home owner can be confused by the term homeowners insurance. Many times it may be referred to as home insurance, home owner insurance, fire insurance, dwelling insurance, house insurance, casualty insurance or hazard insurance. Actually, most of these refer to homeowners insurance which is designed to bring your home and possessions back to the same condition they were in before a loss occurred and is required by mortgage companies to protect the property to which they hold a mortgage. 

Due to the fact that their home or house is and will be their greatest investment, homeowners insurance is the cornerstone of every homeowner's total financial plan.  Homeowners insurance very important to have to meet the requirements of a lender, but for the financial protection it provides against disasters.  It not only covers property, but it also covers liability against any injuries and property damage you or members of your family cause to other people.  Most homeowners insurance also cover the contents of your home. Homeowners insurance is not required by law, but it is required by most lenders and is needed to cover your losses.

Fire Insurance

Fire insurance is a contract between the insured and the insurance company taking the risk. The insurance company agrees to pay to the insured or the payer of the required premiums, a stated sum, should the property, named in the policy, be destroyed by fire.  It is one of the more basic protections available to an owner of a property. In most cases it covers the building and/or its contents. If you have homeowners insurance, the insurance for fire is  included in the policy and a separate insurance is not needed.

Casualty Insurance

Casualty insurance is coverage for unexpected legal expenses resulting from bodily injury or property damage to someone else. It is made up primarily of liability coverage's, which protect an insured against injury or damage claims made by other parties.  It is a component of the homeowners insurance policy and should not be needed as a separate policy.  It is also called liability insurance because it protects you in case you are found liable for an accident or other negligence (neglect or carelessness).

Hazard Insurance

Hazard insurance is sometimes referred to as property or property and casualty, insurance for fire, and flood insurance.  It is usually geared towards physical property damage, rather than owner liability insurance. This insurance is covered under the homeowners insurance policy that insures the dwelling and contents. If you live in a flood area, flood insurance will be required as an additional insurance.

No matter if you have a loan on your home or not, homeowners insurance is very important to you to protect your large investment in your home.  Your home not only provides shelter for you and your family, but in can be important to you in later years after retirement.  If you own or are paying for a home and don't have homeowners insurance you should contact an insurance company today to correct this problem.