insurance quotes


Source: BLOG

Homeowners insurance is actually a type of insurance coverage in which the home along with its contents and other possessions of the policy holder are insured against any loss or damage specified in the policy. The losses against which homeowners insurance is available are usually due to fire, natural disasters, burglary, accidents, etc. Some policies cover the owner's liability also. It must be clearly understood that homeowners insurance is not for the property itself but your interest in the property. The beneficiary under the policy has to have legal title over the property. So it becomes effective only after the transfer of ownership to the policy holder.

Homeowners insurance consists of two things, the home in which the owner has an interest and the contents of that home. Basically all policies cover the cost of the home but the type of coverage available for your personal property varies from policy to policy and from company to company. The insurance premiums also vary widely. You can also extend the coverage by adding an endorsement to the policy on payment of additional premium. All homeowners insurance policies are not created the same, there are different policies to suit different condition. The amount of premium you have to pay will vary according to the type of property and material and the type of risk you want to be covered.

Your lender will want you to take homeowners insurance policy before closing. You should shop for the policy rather than your lender, because the risk perceptions of both will be different. As the burden of paying the premium will be on you, you should have a final say in the type of homeowners policy you are purchasing. You will want to cover as much as possible at the least possible cost without sacrificing the risk coverage. You should do some comparison shopping of different policies offered by different companies and make a costs and benefits study.