While you can technically own a home without having insurance, it would be very unwise to do so. You never know when a catastrophic incident might happen that causes thousands of dollars in damage and property loss. A house fire or natural disaster could destroy your entire home.
This is why mortgage lenders require basic home insurance.
Though standard home insurance will protect you from most common threats, situations can still arise that fall outside of its coverage. It’s very important for homeowners to not only have insurance but to have a proper understanding of what their insurance provides coverage for.
What Home Insurance (Usually) Covers
Specific coverage can vary from policy to policy. That said, there are certain areas which almost all home insurance plans provide coverage for. This typically includes coverage for:
- Fire and smoke damage
- General weather damage (excluding flooding)
- Theft and vandalism
- Damage caused by vehicles
- Liability for harm to others
Even with coverage for these areas, there can be exceptions. For example, water damage can be highly situational. Damage caused due to a burst pipe, water-based appliances, fire sprinkler systems, and similar situations is generally covered.
Flooding, however, usually is not.
For situations where you have coverage, your insurance will provide compensation for repairs, replacement of property, and potentially temporary housing, if needed.
What Home Insurance (Usually) Doesn’t Cover
Home insurance policies are generally designed to cover common needs and situations that any given homeowner could potentially face. This is why something like flooding is not typically covered. Some homeowners are much more likely to experience flooding than others. The same is true for earthquakes and sink holes.
Tornado coverage can vary depending on where you live. If you live in an area that’s more prone to tornado damage, you may need extra coverage.
That doesn’t mean you can’t get coverage for these items. However, you’ll likely need an additional policy.
Getting the Coverage You Need
As a homeowner, it’s critical that you have proper insurance coverage. Otherwise, you could suddenly find yourself out of house and home. Depending on where you live, you may benefit from catastrophe insurance. This typically provides coverage for floods, earthquakes, landslides, and more.
However, that doesn’t mean every homeowner needs catastrophe insurance. There’s no benefit in spending money on insurance you’ll never actually need to use.
The best way to get the coverage you need at a price you can afford is by using an insurance agent. At Link Hellmuth, we work with homeowners to build a policy that covers their specific needs. From there, we shop their policy around to major companies so that they get the best price possible.
For all of your home insurance needs in the Springfield, Ohio area, contact Link Hellmuth today!