Homeowners insurance

Important points

• For a fixed monthly payment, a homeowners insurance policy will compensate you if your house gets damaged or destroyed. It typically also covers damage to or theft of your belongings. 
• Some mortgage lenders require you to get it. 
• You should base your policy amount on the replacement cost of your house. 
• Insurers typically exclude damage caused by events such as flood or earthquake. You can get supplemental insurance to cover such events.   

Why should I get it?

• Your house is likely the most valuable thing you own, and the cost to repair it if it gets damaged by fire, weather or vandalism can be significant. Homeowners insurance will compensate you to cover the cost of repairs.
• Most insurance plans also protect your personal belongings inside the house, such as electronic equipment and furniture. The out-of-pocket cost to replace these items if they are damaged or stolen can be substantial.

 What’s the right policy amount?

• Your homeowner's insurance policy should cover the total replacement cost of your house and other belongings. Replacement cost is the amount it would cost if you needed to rebuild your house and replace the stuff inside, including materials and labor. 
• Replacement cost is different than the market value of your home, which typically includes land and can fluctuate depending on the real estate market. 

 What’s typically covered

• Damage from weather-related events, such as storms, snow, or the wind.
• Damage from non-weather events, such as burglary, fire, or equipment accidents (e.g. water heater burst).
• Medical bills and litigation costs if somebody falls or is injured on your property. 

What’s typically not covered

• Damage from selected large-scale events such as floods or earthquakes.
• Any intentional damage or injury.  
• Any business losses if you run a business out of your house.

Disclosures:

Albert Insurance Services, LLC provides insurance services on Albert's app. Click here for terms.