What is homeowners insurance?

Homeowners insurance provides financial protection against disasters. A standard policy insures the home itself and the things you keep in it.

Homeowners insurance is a package policy. This means that it covers both damage to your property and your liability or legal responsibility for any injuries and property damage you or members of your family cause to other people.

Damage caused by most disasters is covered but there are exceptions. The most significant are damage caused by floods, earthquakes and poor maintenance. You must buy two separate policies for flood and earthquake coverage. Maintenance-related problems are the homeowners responsibility.

Can I own a home without homeowners insurance?

Unlike driving a car, you can legally own a home without homeowners insurance. But, if you have bought your home and financed the purchase with a mortgage, your lender will most likely require you to get homeowners insurance coverage. That's because lenders need to protect their investment in your home in case your house burns down or is badly damaged by a storm, tornado or other disaster.

If you live in an area that is likely to flood, the bank will also require you to purchase flood insurance. Some financial institutions may also require  earthquake coverage if you life in a region vulnerable to earthquakes, If you buy a coop or condominium, your board will probably require you to buy homeowners insurance.

After your mortgage is paid off, no one will force you to buy homeowners insurance. But it is not advisable to cancel your policy and risk losing what you've invested in your home.

What is in a standard homeowners insurance policy?

A standard homeowners insurance policy includes four essential types of coverage. They include:

1. Coverage for the structure of your home.
2. Coverage for your personal belongings.
3. Liability protection.
4. Additional living expenses in the event you are temporarily unable to live in your home because of a fire or other insured disaster.

Are there different types of policies?

Yes. A person who owns his or her home would have a different policy from someone who rents. Policies also differ on the amount of insurance coverage provided.

The different types of homeowners policy are fairly standard throughout the country. However, individual states and companies may offer polices that are slightly different or go by other names such as "standard" or "deluxe".

© Insurance Information Institute, Inc., www.iii.com

Why choose the Streeter Insurance Agency?

Professional, personalized service from our agency and claims representatives is what we are known for. I will get to know you, your neighborhood, and your special needs, helping to make sure you get the best possible insurance coverage at the best possible price. My goal is not only to give you superior service but also peace of mind. The peace of mind that comes from knowing you have properly and economically protected yourself, your family and your home. There are many insurance options available to you; we will work with you to design the best for your situation. We will help you sort out all the insurance "jargon". I welcome you to contact me at any time, for a free review of your insurance.