Purchasing a home, furnishing it, buying appliances, and making sure that it’s livable is possibly the largest investment that you’ll ever have to make in your life. Unfortunately, even after spending all this money, there is no guarantee that everything will stay in optimal condition. Furniture, appliances, and even infrastructure eventually get worn out. Damage, repairs, and replacements are inevitable. Fortunately, there are some things you can do to lessen the financial load that you may face. Read this article to find out about 4 types of protection that you should have as a homeowner.
- Dwelling Insurance Coverage
The dwelling insurance coverage is designed to cover the damages that occur to the surrounding property of your house. The policy covers both the insured person’s belongings and property. The Insurance Information Institute suggests that there are specific hazards or issues that most insurance policies for homeowners cover. Although the specifics may differ from one company to the other, dwelling insurance companies often cover the damages resulting from lightning strikes, hail, fire, smoke, vandalism, windstorms, explosions, theft, ice, sleet, snow, any falling objects, motor vehicle accidents, and aircraft damages.
- Home Warranty
Many people confuse home warranties with homeowners insurance. You need to keep in mind that, unlike home warranty, homeowner insurance can cover major crises as a result of hail, fires, property crimes, and certain types of water damage that may weaken the home’s structure or the owner’s possessions. A home warranty is a contract that exists between a home warranty company and a homeowner. The company typically provides discounted replacement and repair services for the major aspects of a house, such as HVAC, electrical systems, furnace, and plumbing. Some companies may also provide coverages for appliances and features like swimming pools, dryers, washers, and refrigerators. The specifics of the contract differ from one company to the other, which is why you should opt for an award-winning home warranty company for the best coverage. Homeowners’ insurance doesn’t cover these aspects, nor does the aid it may provide cover the cost of repairing them. However, some companies allow their clients to buy additional coverage options.
- Personal Property Coverage
Personal property insurance provides coverage for your belongings, including your electronics, clothing, and furniture. This type of coverage is typically applicable for both homeowners and renters. It is designed to help you pay for the repair or replacement costs of your belongings following a coveted loss like fire or theft. Actual cash value and replacement cost are two types of personal property coverage. The former accounts for the depreciation, providing compensation based on the item’s current value, while the latter provides the dollar amount it will take to repurchase the same item.
- Appurtenant Structures Coverage
This type of coverage is commonly named “other properties” coverage. It is designed to cover a range of coverage options for damages that happen to the neighboring inhabitants who are separated by a clear area. Though, this type of coverage does not extend to businesses and renters.
Being a homeowner is a huge financial responsibility. It requires you to stay on top of all your property’s repair and maintenance costs. Unfortunately, some damages result from external factors that we can’t control. Luckily, there are several ways in which we can protect our homes without breaking the bank.
