Purchasing a home is one of the biggest financial decisions in most people’s lives. Unless you’re buying a house outright, you’ll most likely commit yourself to long-term financial agreements to finance the purchase. Homeowners’ insurance is designed to protect and cover you, your home, and your belongings from damages arising from a wide variety of risks.
Do You Need Home Owner Insurance?
Yes, you most probably do. Homeowner insurance is a shield protecting you and your home from the unexpected. Homes are subject to a wide variety of risks, whether it’s theft, damage to the house, or an extreme weather event. Unexpected home repairs are pricey. Plus, when a third party is involved, and you are found liable for damages or medical costs, you may be looking at an enormous financial burden.
Last year, when Hurricane Harvey dumped 9 trillion liters of water across Houston and the surrounding area, only 20% of homeowners in that area had flood insurance. This coverage paid for the repairs to their houses, allowing them to restore their homes without shouldering the financial burden themselves. The following are the most common types of homeowner insurance policies:
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Owner Occupied Insurance Policies
A standard owner-occupied insurance policy covers the home structure, personal belongings in the house, and other structures on the property. It also provides protection against liability, with the extent of protection depending on each policy. Your policy will ultimately be based on your home’s value, coverage limits, amount of personal property, and other factors.
Non-Owner Occupied Insurance Policies
Landlords can obtain non-owner-occupied insurance policies to protect themselves from liability claims and cover the rented-out building’s structure and the landlord’s personal property. However, the tenants’ property inside the property will not be insured.
Other non-owner-occupied policies include Rental Home or Landlord policies which cover second homes. There’s also Vacant Home Insurance for a vacant house that’s awaiting move-in or sale.
If you own or plan on owning a condo, you will need the H0-6 policy, also called Condo Insurance. This policy offers coverage against damages from loss of the owner’s personal property and the condo’s interior. It also protects the homeowner against liability claims and extra living expenses if a claim forces them to live elsewhere.
Unlike other homeowner insurance policies, renter’s insurance doesn’t provide coverage for the structure but for the renter’s personal property inside. The structure of the home is instead covered by the landlord’s insurance policy.
Any homeowner who wants to protect themselves from liability and expensive repairs should purchase a homeowners insurance policy. VOS Insurance is a full-service, independent insurance agency with over 20 years of combined industry experience. We will help you select all the coverage options you need to protect you from liability and damages.
Contact us today. We’d love to help!