Homeowners Insurance Policies

Chicago Insurance Advisors

With so many insurance policies available today, many people try to eliminate what they consider unnecessary, and stick with only the insurance policies they need most. Homeowner’s insurance sits at the top of this list. Get the facts on homeowner’s insurance.

Homeowner’s insurance is a type of insurance that homeowners utilize to protect their home from various types of loss such as fire, theft or weather-related damage. Home insurance is also required when homeowners have a mortgage on their homes so the mortgage company will receive a return on investment.

Home insurance is usually divided into separate types of coverage. Although this may vary by company, coverage generally includes the following:

  1. Your home
  2. Additional buildings such as garage, fences or sheds
  3. Personal property such as furniture and electronics
  4. Additional living expenses 
  5. Personal liability 
  6. Medical expenses 

Homeowners must pay a premium in exchange for the insurance. The premium depends on the amount of the coverage and the deductible, which is the amount you must pay before the insurance pays. With a $1,000 deductible and $5,000 worth of damages, the insurance will pay $4,000 and you pay $1,000. Higher deductibles mean lower premiums.

Homeowner’s insurance generally doesn’t cover flood, earthquakes or hurricanes. The homeowner must purchase separate policies for this. The personal property portion pays for belongings inside the home, but usually only pays a certain amount for specific items. Therefore, if the homeowner has valuable items, such as guns, jewelry or art, they’re advised to get special “riders” or additional policies on these items so they’re adequately covered.

The amount you’ll get for losses to your home or personal property depends on what you’ve chosen or what the insurance company offers. Typically, it’s either actual cash value, which is a specific dollar amount or replacement cost, which means the actual dollar amount of what it costs to replace the home or belongings.



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