3 Reasons Why You Should Shop for Home Insurance from Shelter

3 Reasons Why You Should Shop for Home Insurance from Shelter – Every homeowner has that moment when they dread the thought of something going wrong with their home. What if a natural disaster hits? What if there’s a fire? What if someone breaks in? What if the roof caves in from heavy snowfall? The list of what-ifs is endless and it’s unsettling to think about the potential repercussions of these events on your home, its value, and its occupants. Thankfully, there are home insurance policies that can help you get back on your feet financially should the unthinkable happen. However, most standard policies have limitations that may not cover everything you own individually or as part of your house. If you own a home, it’s important to understand what is covered by your current policy and what risks you could be left uncovered. To help you understand the ins and outs of home insurance and which types may be best for you, we’ve created this handy guide.

What is Home Insurance?


A home insurance policy provides financial coverage for damage to your home, its contents, and loss of use, as well as liability coverage for damage you cause to other people’s property. The two primary types of home insurance are homeowners and renters insurance. Homeowners insurance offers additional coverage for the structure and the things inside your house, such as appliances, furniture, and electronic equipment. Renter’s insurance provides coverage for your possessions, as well as liability coverage if someone is injured in your home. A typical policy will include coverage for the cost to repair or rebuild your home if it is damaged, the cost to replace stolen or damaged items inside your home, and the cost to clean up after a covered disaster. There are many different types of home insurance policies. Homeowners’ and renters’ insurance policies are often customized to each policyholder’s needs and risks.

Types of Home Insurance


– Fire Damage Insurance – Fire damage is one of the most common homeowners insurance claims. If a fire is not covered by your standard homeowner’s policy, you may want to consider a fire damage insurance policy to protect your home and its contents. Fire damage insurance is often sold as a standalone policy or as part of a homeowners insurance policy. 


– Flood Insurance – Floods are a common disaster in low-lying areas where rivers or streams run through or near residential communities. While homeowner’s policies typically cover damage from flooding caused by rain or ice dams, they often exclude damage from overflowing rivers, ruptured dams, or tidal surges. 


– Homeowners Insurance – This is the most common type of home insurance. It provides coverage for the structure, appliances, and other items in your house, as well as liability coverage in the event someone, is injured on your property. 


– Condo Insurance – Condominiums face many of the same risks as standard homes. However, condo owners’ insurance policies often have different coverage options than standard homeowners’ policies. Your board of directors may require you to have condo insurance to cover the structure, your contents, and liability claims.

Residence and Dwelling Coverage


– Loss of Use Insurance – This type of coverage is normally offered on a per-day basis and can help pay for the cost of staying in a hotel or at a friend or family member’s house while your home is being repaired. – Contaminant Cleanup Insurance – If your home is damaged by flooding, a broken water line, or another contamination, this coverage can help pay for the cost of cleaning up and removing the contaminants from your home. – Structural Coverage – Many standard homeowners insurance policies do not cover the full value of your home. This coverage can help bridge the gap between the amount you owe on your mortgage and the amount your home is worth if it is damaged.

Loss of Equity and Depreciation Coverage


– Additional Living Expenses Coverage – This coverage can help you pay for the cost of staying in a hotel, renting an apartment, or finding other temporary housing if your home is damaged and uninhabitable. – Extra Cost of Construction – This coverage can help cover the additional costs associated with building your home to code if your homeowner’s policy doesn’t cover this. – Extra Cost of Materials – This coverage can help cover the additional cost of building materials if your homeowner’s policy doesn’t cover this.

Fire and Smoke Damage Coverages


– Fire Damage – Fire damage is one of the most common homeowners insurance claims. If a fire is not covered by your standard homeowner’s policy, you may want to consider a fire damage insurance policy to protect your home and its contents. – Basic Smoke Detector Coverage – Many homeowners policies do not cover damage from smoke detectors unless they are hardwired. Check your policy to see if you have this coverage. – Special Coverage for Fireplaces, Wood Stoves, and other Open Flame and Non-Smoking Related Items – Most policies have special coverage for certain items that are considered high-risk for causing fires, such as wood stoves and open flame items, such as candles and incense.

Burglary and Theft Coverages


– Burglary – Burglary is when someone breaks into your home while you are there or while you are away. Most policies cover the cost to replace stolen items, but not damage done to your home during a burglary. – Theft of Property – Theft is when someone steals your items from your home while you are there or while you are away. Most policies cover the cost to replace stolen items, but not damage done to your home during a theft. – Special Coverage for High-Risk Items – Many policies have special coverage for high-risk items, such as jewelry, guns, expensive artwork, and sports equipment.

Additional Dwelling Insurance benefits


– Extra Living Expenses – This coverage can help you pay for the cost of staying in a hotel, renting an apartment, or finding other temporary housing if your home is damaged and uninhabitable. – Extra Cost of Construction – This coverage can help cover the additional costs associated with building your home to code if your homeowner’s policy doesn’t cover this. – Extra Cost of Materials – This coverage can help cover the additional cost of building materials if your homeowner’s policy doesn’t cover this.

Conclusion


There are many benefits to owning a home, but it also comes with a lot of responsibility. Protecting your home financially with a home insurance policy is an important part of being a homeowner, as it can help you recover from a wide range of unfortunate events. Shopping for home insurance is a big decision, and it can be overwhelming to sift through all the different options. By understanding the different types of home insurance policies and the coverage they provide, you can make an informed decision that is best for your situation.

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