Home Insurance 101

Posted by Farrell Agencies on September 13, 2017

Owning a home may be your largest single financial investment so it’s important to protect your property and contents against unforeseen risks with home insurance. Although not mandated by law, insuring your house can give you peace of mind.

  • Home insurance protects you from having to pay out a huge amount at once, often at a very difficult and emotional time.
  • The home policy is usually a term policy-a policy that is in effect for a fixed period of time.
  • The payment the insured makes to the insurer is called a premium. The insured must pay the insurer the premium for their home each term.

Your home insurance usually safeguards you in the following ways:

  • Financial loss: A home policy will refund you if your home or personal effects are stolen or if any other an unforeseen situation that is specified under your property policy occurs.
    If an unforeseen situation, like a fire, does arise, your home and garage will likely need to be restored. You will be reimbursed for the value of items, such as furniture, cameras and computers-or the items themselves will be replaced. If you cannot live in your home while it is being restored after a loss, your insurance policy will pay for some of your extra living expenses, such as accommodations, restaurant meals and storage.
  • Personal Liability: If someone is injured while visiting your home, they could sue you for damages. If they win and a court awards them a significant settlement, you could be financially ruined. Your wages could be garnished and you could have a hard time getting back on solid ground. Property insurance safeguards against this kind of liability.

Your house insurance will also protect you against liability for accidental damage to someone else’s property. For example, if you live in an apartment building and your bathtub overflows, resulting in damage to your neighbor’s apartment, your home insurance will pay for repairs or replacement.

If you rent your home or own a condo unit, you might feel that investing in a home insurance quote is pointless. If you are just starting out and renting your first place, you might believe that you have nothing of real value that needs replacing should something like a fire occur. If you own a condo unit, you might believe that your condo corporation’s home insurance policy has you covered, it doesn’t.  This is why whether you rent or own a condo, purchasing a home policy is a good move.

Contact Farrell Agencies today for quotes from all of the insurance providers conveniently in one place.  We work for our customers first – as brokers we have options of which insurance companies we use. We quote out many options and are not loyal to one carrier.

 

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