Home Insurance-What it is and Why you Need it

by Sudarsan

Owning a home comes with a sense of belonging and fulfillment. A home is a haven. Home is where the heart is. Most people consider themselves unsettled in life if they do not have a home to their name.

This is where you keep your belongings and possessions.  What would happen if you woke up and realized your items were stolen or consumed in a fire accident? Where would you find enough money to furnish the house or replace the stolen items? Enter homeowner insurance. 

What is homeowner insurance? 

Homeowner insurance is a policy that repairs or replaces items covered therein when a peril befalls your household. Further, you may reach out to hershey home insurance to find a provider ready to help you out.

Who needs homeowner insurance cover?

Homeowner insurance is not a requirement by the government. Anyone who has finished paying their mortgage can secure their asset to compensate them if an accident happens to their homes. 

However, if you’re planning to take a mortgage, homeowner insurance is a mandatory requirement. A lender needs to secure their investment in case a peril strikes before a client can finish paying their dues.

A homeowner needs this coverage to:

  • Help them replace personal belongings covered by the policy if they’re stolen or damaged
  • Need liability protection
  • Rebuild, or replace their home after a calamity covered by the policy 
  • Secure a loaner’s investment for mortgage

What is needed when purchasing homeowner insurance?

Preparation is crucial when purchasing homeowner insurance. Put your house in order by having the following:

  • Personal information such as your social security, driver’s license number
  • Your current address
  • Information and records for recent repairs and renovation
  • A home inventory

You’ll also need to disclose the following:

  • The location and neighborhood the house is found
  • The square footage of the house
  • The type of roof, foundation, and electrical and drainage systems
  • Number of rooms, storage, and sanitation units
  • Garage size and type
  • Security systems you’ve put in place
  • Type of air-conditioning and heating systems
  • When it was built

What is covered by homeowner insurance?

Homeowner insurance cover:

  • Physical damage to the house
  • Damage to other structure attached to the house
  • Personal property damage
  • Supplementary living expenses while the repair is underway

Homeowner insurance caters to perils such as: 

  • theft or vandalism
  • fire, smoke, hail, lightning, windstorm and explosions
  • damage from aircraft and cars
  • water damage caused by leaking or ruptured drains
  • trees and other falling objects

However, the following will not be covered in the insurance unless you request an additional contingency plan. Some of the exempted perils include:

  • Pollution damage
  • Earthquakes, floods, sinkholes, and land movements
  • Normal tear and wear
  • Deliberate damage of the home
  • Damage from mold, fungi, vermin,

birds, and animals

Valuables such as jewelry, money, and other such items need an additional plan. It is critical to disclose such items to the provider so you may be advised appropriately.

Homeowner insurance is a mandatory requirement if you’re servicing a mortgage. It is also critical to purchase one even when this is not the case. Homeowner insurance is a cover that helps you redeem your home. Therefore, take time to shop for the most reliable provider.

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