Homeowners Insurance

Sometimes called home insurance or abbreviated as HOI is a specialized type of property insurance. This form of insurance protects your home and any possessions within it from damages and theft. Homeowners’ insurance coverage is generally required by mortgage companies for the fair value of the home. Without homeowners insurance coverage a mortgage lender will not approve a mortgage loan from the property.

While homeowners insurance covers most types of damages a residential building can experience, there are situations where additional coverage is needed. This can include windstorm insurance and flood insurance in some parts of the United States. Other exclusions in homeowners’ insurance typically include termite damage, neglect, mold, and any damages related to war.

The payout from insurance is adjusted to cover the cost of replacement after the addition of an inflation factor and cost index. This typically works out to 50% – 70% of the amount of insurance you have on your property.

Many renters in the US are required to pay renters’ insurance. This provides most of the coverage of homeowners insurance except coverage for the structure or home. It mostly covers fires, theft, and vandalism.

Those with many expensive possessions, such as high-end fine art, designer clothes, or jewelry may want to consider a separate insurance policy.

There are several ways a homeowner can lower the costs of homeowners’ insurance. This can include installing a security system, raising the deductible, looking for multiple policy discounts, and comparing providers. This can help a homeowner receive the best coverage for a competitive rate.

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