What is homeowners insurance?
Homeowners insurance is a combination of home insurances that protects the owner’s house and its belongings from futures damages related to accidents, disasters, etc, according to iii.org.
The homeowner’s insurance is very important when it comes to property losses. One mistake in the house can damage the property and its belonging which can lead to the loss of a lot of money. This is why lenders will not lend you money if you do not have proof of homeowners insurance.
It is not only homeowners who need insurances. Some landlords also require their tenants to have renter’s insurances.
What does the homeowners insurance covers?
The homeowner’s insurance protects the owner from losses related to the house. Insurance providers have different kinds of protections and rates vary from one insurance provider to another. In addition, the rates change based on the location where the house is built.
For example, a person who lives in the middle of a flood zone will have higher rates than a person who does not. This is because people who live in flood zones must have flood insurances due to high chances of floods and they will pay any rate instead of losing their homes.
On the other hand, people who live in flood-free zones will pay small rates. This is because the chances of having a flood are slim. For this reason, insurance companies will offer extremely low rates to attract customers.
The following are coverages of homeowners insurance provided by Allstate insurance company.
- Fire and smoke
- Falling objects such as trees
- Wind storm(hail)
- Frozen plumbing
- Water damage from the water heater, plumbing, heating and cooling systems, etc.
- Theft
Other insurance providers could cover similar losses or more depending on the location of the house and the companies business structure.
