When it comes to your home, you can’t afford to ignore insurance. Your house is one of your lifetime investments and that’s why it is important for you to protect it.

You might have wondered about getting home insurance. Do you think you really need it?
Well, the answer is yes. It safeguards your biggest investment and you in a lot of ways. 

It is however important to make the distinction between home insurance policies and home warranty plans. Whereas home insurance will help homeowners to pay for structural damage and loss of personal property from emergencies like theft or fire, a home warranty can be used to cover the repair and replacement costs of home systems and appliances when they fail from old age or wear and tear.

To summarize, while a home warranty contract is similar to home insurance, they are not the same thing. Ultimately, homeowners need both home insurance and a home warranty if they want to protect the structure of their home as well as any systems and appliances.

For example, if your property is based in Texas and you experience an issue with your appliances, then as long as you have a home warranty Texas based contractors will be sourced by your home warranty provider and these skilled professionals will be able to get your appliances and systems back to their best. Consequently, you might want to consider purchasing both a home insurance policy and a home warranty as they can work together to provide protection on all parts of your home.

The US has standardized insurance forms that divide protection into several categories.
HO1 (Basic form): This is a named peril policy. It only covers damages which are outlined in your policy such as fire or smoke, theft, damage from a vehicle, windstorms, explosions, and vandalism.

HO2 (Broad form): It is designed to cover the accidental discharge of water or stream, sudden damage from electrical current, and damages due to ice or snow.

HO3 (Special form): This is the most adaptable and affordable insurance policy and generally covers everything such as damages due to riots, power failure, water damage, nuclear hazards, wear and tear, and government actions.

But floods and earthquakes are almost never covered in this policy. The only option which provides flood insurance is The National Flood Insurance Program which is operated by the US Government.

HO8 (Older home policy): It is designed for homes which are over 40 years old and don’t meet all the structural requirements.

Here we have listed a few benefits of home insurance and it will help you to appreciate its need.

It protects your home and other property
Despite security equipment and safety gadgets, you can come across some threats such as robberies, thefts, riots, strikes, and terrorism which are a very real risk. However, not every insurance policy will offer you this protection but you can ask for the benefits. Additionally, if you are living in a flat or apartment or in a housing society, you should get your home insured. It not only protect your building but also the belongings or content of your house. Along with that, there are riders available for protecting against the loss of expensive jewelry.

Liability protection
Liability insurance safeguards you against accidents happening on your property as well as away from your property, for which you are responsible. For example, if someone gets injured in your home and hurts themselves, or if a tree falls on a neighbor’s roof from your garden, you could be held responsible. In that case, your home insurance policies will cover that claim for any medical expense or repairs to the policy limit. Moreover, if you have a child who is living away from home, can be included in the liability insurance policy. They will be covered under your policy till 26 but there will be a limit for the protection amount.

Protection against natural disasters
If your home hit by any unintentional destruction or damage or its contents, having hazard insurance will protect you against it.
It will make sure to safeguard you against fire, hail, windstorm, vandalism, lightning, and explosions. It covers all the cash value of the destructions and their replacement values. This value pays enough to rebuild your house or replace its content which is lost or damaged.

Exclusions
Always remember, home insurance does not protect you against every hazard or ‘Act of God’. Flood and earthquake damage are not covered by standard home insurance. There are separate flood and earthquake policies that are available in your location. These premium policies depend upon the likelihood of hazards in your area. For example, you can get a flood insurance policy if you are living in a flood-prone area.

Additional living expense
This is a part of almost every home insurance policies. Additional living expenses are compensations for you when you cannot live in your house after a loss or while being repaired. It provides you money to let you maintain your usual lifestyle. It also pays for the expense of living somewhere else like hotels or rental apartment. It will cover all the living expenses until your home is repaired or until the limit is reached on your policy.

Put Your Mind at Ease
If you have home insurance, it will put your mind at ease. While considering the right policy, think of what could happen to you or your family if you are not insured. There are many who got financially devastating due to tragic events. If something like that happens, you will be protected against it. So, it is always better to be safe when it comes to something valuable and important as your house.

Do you know about home insurance limits and deductibles?
Many people don’t!
You should know that all the coverage and protections come with limits. A maximum amount will be there to pay out to cover a loss. It is important for you to consider that if you had any damage, what will be the potential expense of rebuilding your home or replacing its content while selecting a coverage limit. Additionally, many coverages have deductibles too. It is the amount that is paid by you before having a home insurance

Home insurance is a necessity. It won’t prevent damage to your home or belongings but will help in providing financial safety. But it can be quite tricky if you don’t have complete knowledge about it. Consult an expert and genuine company such as EINHORNINSURANCE.COM  before you make a choice.