| When it comes to homeowners insurance, most | | | | you and your family to temporarily live in another |
| people immediately think of protection in case a | | | | home or apartment and include money for |
| fire destroys their home, but there is so much | | | | clothing, food, etc. |
| more to today's homeowners insurance policies. | | | | Actual Cash Value vs. Replacement Cost |
| Let's take a quick look at what homeowners | | | | Actual cash value is the cost of replacement of |
| insurance covers and what it all means to you. | | | | the contents, minus depreciation. So the older |
| What's Included In A Homeowners Policy? | | | | your furniture, clothes, appliances, etc., are, the |
| Think of a homeowner's insurance policy as a | | | | less you will get in the event of a claim. |
| complete package policy. One part of the package | | | | The exception to this is to purchase replacement |
| covers damages to your home. The second part | | | | cost coverage. It is very inexpensive and it |
| of the package covers liability for any injuries or | | | | provides for full replacement value on your home |
| property damage that happens to others on your | | | | and all of its contents. This is a very good deal |
| property. This would even include your pet that | | | | indeed. |
| would happen to bite someone. | | | | Liability |
| Your homeowner's insurance policy will of course | | | | All homeowners insurance policies include coverage |
| cover damages from a fire, tornado and most all | | | | for liability. This would include coverage in case |
| other natural disasters. The only exceptions to | | | | someone slipped and fell in the snow on your |
| this would generally be floods and earthquakes. | | | | property, or a tree limb fell from your yard onto |
| For coverage from these disasters you would | | | | the neighbor's house and damaged their roof. |
| need to obtain special coverage. Keep this in mind | | | | These are only two examples of the importance |
| if you live in areas prone to flooding, or to | | | | of homeowners liability insurance. |
| earthquakes. | | | | Renters Insurance |
| The other exception is for wear and tear to the | | | | Don't under estimate the importance of having |
| home. Most every insurance company will exclude | | | | renters insurance if you are not the owner of a |
| maintenance related claims if caused by neglect | | | | home. Renters insurance will cover all of your |
| on your part. A good example of this would be a | | | | possessions in the event of a loss, as well as give |
| roof. If it is already worn out and in need of | | | | you liability coverage. Renters policies are very |
| replacing, it most likely will be excluded in the | | | | inexpensive and well worth having. These policies |
| event of wind damage that tears it off. | | | | will also include coverage for loss of use in the |
| Be sure you have adequate homeowners | | | | event you can't stay in your home or apartment |
| insurance coverage. Don't get caught without the | | | | due to the loss. |
| coverage you need. If you live on a flood plain, be | | | | Understanding the contents of your homeowners |
| sure you have flood insurance. You'll have to | | | | insurance policy is important. You don't want to |
| purchase a separate policy from your insurance | | | | wait until disaster strikes in order to find out |
| agent for flood damage. If you live in an area that | | | | you're not covered. Talk with your insurance |
| has frequent earthquakes, make sure you have a | | | | agent and be sure you know what you need in |
| policy that will cover damages from them. | | | | the way of homeowners coverage. You'll have |
| Homeowners insurance also provides cash for loss | | | | the peace of mind in knowing you're protected in |
| of use due to an insured disaster. It will pay for | | | | case of a loss. |