How it Works

When an incident occurs in your home, you call the insurance company to file a claim. Once your claim has been certified, your insurer will pay up to the policy limit minus the deductible. In the event of a personal liability claim, your insurer will work to settle with the other party or pay to defend you in court.

Policies

Most policies cover common incidents, such as hail, wind and fire damage but exclude damage from earthquakes and floods. A big difference in coverage is whether your policy pays actual value, meaning what your stuff is worth, or replacement value, meaning the cost to replace it in today’s dollars. Also, most policies allow you to add riders that allow you to pay extra premiums to cover things the policy doesn’t normally cover.

The main benefit of homeowners insurance is that it protects your investment in your home. It gives you financial assistance to pay for repair or replacements when necessary.