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homeowners insurance
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| For most people, their home is their single most valuable possession and their biggest investment. Homeowners insurance protects your investment as well as your family and your household possessions. If you suddenly lose your home due to fire or natural disaster, or the contents are damaged or stolen, you probably couldn't afford to replace everything all at once. If you are sued because of injury or damage caused by you on your property, the cost of defending that suit could run into thousands of dollars in legal fees regardless of the outcome of the suit. Most homeowners insurance policies have features that allow you to custom design a policy that's right for you. Traditional homeowners programs offer protection for your home's structures, protection for your personal property, and liability coverages. If you own a condominium, your condo association probably has a master policy that insures all the property and common areas that are collectively owned by the unit owners. These policies usually cover the actual structure of your home, so you don't need to purchase this coverage separately. However, the association policy doesn't cover your personal property or your legal responsibility, and it may not cover improvements you make inside your unit. If you rent your home, your landlord or property owner probably has insured your building. However, this policy doesn't cover your personal possessions within your apartment. Renters insurance would protect you in the event of a loss.
Replacement Cost - This form of loss settlement will repair or replace the damaged property without a reduction for depreciation, up to the coverage amount you've purchased. Guaranteed Replacement Cost - This form of loss settlement will pay the full cost of repairing or replacing damaged property without a reduction for depreciation and without a dollar limit. This protects you against a sudden increase in construction costs due to a shortage of labor or building materials. This coverage is not available in all states and some companies limit the coverage to 120 percent of the cost of rebuilding your home. Actual Cash Value - This loss settlement is equal to the replacement value of the damaged property less an allowance for depreciation. With most insurance companies, unless your policy specifies loss settlement according to replacement value, the settlement is usually based on actual cash value. |
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