Saturday, November 2, 2013

Why Having Home Insurance is Important for Homeowners

Every homeowner knows how important it is to have a home insurance policy. Losing one's home or property to fires, floods, earthquakes and other natural and man-made disasters can be devastating. Since no homeowner can pinpoint exactly when something tragic or unavoidable will happen to his or her home and property, it is all the more reason to be prepared. A home insurance policy gives a homeowner some protection.Home insurance covers the homeowner in case of total loss of home or property caused by a disaster. In short, home insurance protects a homeowner from damages caused by "acts of God." In addition, home insurance also protects the homeowner from sole liability if someone who doesn't live in the home meets an accident within the property.Check your home insurance policy and see if it covers your home under the "all risks" clause. In simple terms, the "all risks" clause means that as long as the policy is intact, it will cover your home and property in the policy in any circumstance, with the exception of those circumstances that are in the exclusion clause. To illustrate, under the "all risks" clause, your home is covered for damages caused by fires, earthquakes and vandalisms. If the policy doesn't include flood damage in its "all risks" clause, it means that your home insurance will not cover damages to your home caused by flood.A good home insurance policy in place will protect you from catastrophes and other unfortunate events that may befall your home and property. Not only does home insurance protect you financially, it also protects you psychologically since having a good home insurance policy gives you peace of mind and security.

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