Do You Need Additional Home Insurance Coverage?

 
While most lenders that offer mortgages to private individuals usually require that their borrowers purchase home insurance for their property from an insurance company, very few people understand exactly what their home insurance will cover in the event of an emergency, natural disaster, or accident. If something ever happens, however, it will be critical to understand what your home insurance policy covers.
 

In general, a home insurance company will provide funds only for the repair or replacement of items in the house or for the structure of the house itself. Of course, this money is only paid out if the damage happened as the result of events that are listed (or at least, not excluded) in the policy. For example, there are usually restrictions in many policies that prevent pay out in the event of flood or vandalism.
 
For this reason, there are a lot of people who look for additional riders on their policies that allow them to buy extra coverage. This means that people can choose to have additional general coverage and/or coverage for items that are not usually covered. For example, there are riders that would cover buildings such as sheds and pool houses that are located on a property but not attached to it. There are also riders that provide full coverage (meaning the homeowner would not have to pay a deductible) for items such as electronics, jewelry, antiques, and computers.
 
Furthermore, there are a lot of policies that will provide some funds to the victims of accidents that occur on the property. This is known as liability coverage, and a homeowner can choose how much of this coverage he or she wishes to buy. This coverage provides money for medical bills and pain and suffering to any injured person. It can also protect the assets of a homeowner if a lawsuit is filed.
 
Finally, homeowner’s insurance policies can provide money for expenses like rent, utilities, groceries, and transportation in the event that a home becomes unlivable. After a natural disaster, this coverage is valuable because the supply of available rental housing typically drops, forcing rental prices sky high. This coverage gives a family or person the ability to rent a similar-sized house until their insured property can be made livable.
 
Disclaimer: This is for information purposes only and NOT a recommendation from Mills Insurance. Please contact a licensed insurance agent specialist to discuss insurance coverage’s and laws.

Mills Insurance Services, Inc. A nationwide insurance company is at your service for the following insurance needs:

• Home insurance
• Life insurance
• Auto insurance
• Health insurance
• Business insurance

 
With headquarter locations in:

• Orange County, California: Los Alamitos and Lake Forest
• Riverside County, California: Palm Desert