Are you a homeowner or planning on becoming one? If so, it is important to know that if you are carrying a mortgage on your home, you need homeowner’s insurance. Do you live in or near Flowood, MS? Then Insurance Protection Specialists can provide the homeowners’ insurance you need.
Home Insurance: The Coverage Basics
A standard policy has four key coverages: dwelling (home), other structures (garage or storage shed), personal property, and liability. Homeowner’s insurance pays for damage and losses to your property when the unexpected occurs, such as a burglary or fire.
When you have a mortgage, the lender wants to ensure its interest is protected. That is why proof of a homeowner’s insurance policy is required.
The most vital part of a homeowner’s policy is the level of coverage. The most common level of coverage is an HO2 policy which protects against 16 perils that are named in the policy. Things such as age, wear and tear, or neglect are not covered. Most policies will include replacement or repairs due to fire, wind, or other weather events as noted in the policy.
Gradual water damage occurring slowly and over time will not be covered. But water leaks and damage that occurs suddenly or if a pipe randomly bursts, the damage will be covered by insurance.
If you have a homeowners policy and allow it to lapse, this will violate the terms of your mortgage agreement. The lender could then force you into a more expensive policy or put your loan in default, which puts you at an increased risk of losing your home.
You need enough coverage to rebuild your home if it is destroyed. For your personal property, you want coverage limits that are at least 50% of your home coverage amount. Liability coverage should be high enough to cover all assets.
Contact Us Today
Talk to the professionals at Insurance Protection Specialists in Flowood, MS today. Obtain a quote or get any questions answered. We are glad to assist.