Why You Need Property Insurance

What is property insurance?  Property insurance that offers you protection for unintentional damages to your home.  It's also called homeowner's insurance, hazard insurance, or fire insurance -- all of which refer to the same type of policy.  You can get property insurance on any type of real estate that you own.  

What can a comprehensive property insurance policy do for you?  A comprehensive property insurance policy will pay for the cost of damages to the actual structure of your house.  as well as the contents of your home.  In case of a natural disaster or major fire, the replacement costs of lost or damaged house contents can be expensive.  When it comes to a property insurance policy, make sure that your policy includes enough content coverage to replace your possessions and that it includes replacement cost coverage.  

There are many standard perils that a property insurance policy can protect you against. The most common of these perils include fire and lightning damage.  Other common property insurance perils include theft, weight of snow or ice, wind damage, volcanic eruption, falling object, snow or sleet damage, and water damage.  Not all of these are covered in every policy, especially if the property is located in a high risk area for a particular peril.  For example, properties located in a flood zone typically need to buy additional coverage for water damage.  There are other types of coverage that you may be interested in writing into your property insurance--ask your agent for details. 

Most property insurance coverage will provide you with liability coverage.  This is in case of an injury to someone due to accident or negligence within the boundaries of your private property.  Property insurance can potentially protect you from and pay for the cost of a lawsuit and legal fees should someone decide to bring a lawsuit against you.  Liability coverage is not a government-mandated requirement.  However, this form of insurance is your first line of defense against expensive lawsuits.

When you are in the process of applying for a mortgage, all lenders require that you get some form of property insurance.  If you rent, your landlord will have this coverage for the building -- but not for your personal property.  Strongly consider buying a rental unit policy to protect your possessions.  

Title Insurance is another form protect your home and assets.  This is purchased when closing a property and is required by all lenders.  Your title insurance protects you from losses should problems come up with the property title after closing the sale.  If someone successfully demonstrates a prior claim on the property that was unknown at closing, title insurance covers all the costs that are associated with fixing the title problem, including legal fees.