Buying your home is one of the most special moments of your lives. You’ve accomplished so much. You have a family. You’ve worked hard that now you’re finally able to call a house your home. Sentiments aside, you have to think logistically in protecting your home. After all, you are the responsible adult.
Consider what would happen in the event of a disaster like a fire, storm, accident, or similar tragedy. Would everyone in your family be protected in your home? They should be. Take it even further: would everyone present in the home during the event be covered by your insurance? It isn’t as clear-cut as you might think. Depending upon their age and family relationship, they may or may not be covered.
Here are some tips on finding the best homeowners insurance.
So, who exactly is covered under a homeowners insurance policy? Typically, the insured includes you (the person who owns the insurance), as well as the people who live in the home. This might include your spouse, relatives, and anyone below the age of 21 who is under your care. Otherwise, people who are living in your home and aren’t relatives may not be insured.
This depends on your insurance. Whether or not they qualify as residents will depend on the insurance company’s policy.
Here are some examples of how “qualified” residency is applied:
- A person is divorced from her spouse and she moves out of home. Although the homeowner insurance is in both of their names, the wise is not considered a resident she moved out of the house.
- Children of divorced couples who have joint custody usually qualify under both homeowner insurances.
- A friend who lives in the house. Typically, the friend will not be covered because he isn’t a relative.
- The homeowner rents out a room to a tenant. The insurance company won’t cover the tenant since she is not a relative. However, in this case, the homeowner should have a landlord’s insurance policy while the tenant should have a renter’s insurance policy.
Many homeowners believe having their home insured will cover them for practically any damage sustained to the house and people inside of it. Truth be told, some homeowner’s policies contain many exclusions and restrictions on coverage that will leave you flustered in the event of a disaster. That’s why it’s important to read your coverage thoroughly and consider the exclusions it has—and whether or not you’re able to cover those risks.
In some cases, insurances will have add-ons that they can attach to your plan, depending on your needs. Compare homeowners insurance so that you know you’re finding the best policy for your household.
In other cases, damages or injuries might be caused by you or your family. Liability coverage protects you from lawsuits filed by others. For instance, if your dog bites your neighbor and she has to go to the doctor, your insurer will pay her medical expenses. Overlooking personal liability coverage is one of the bigger mistakes you can make when looking for homeowner’s insurance. Otherwise, you might be looking at a lawsuit.
So, there you have it. You’ve gone this far and now you’re looking at homeowner’s insurance. Make sure not to skimp out on personal liability coverage and read through policies very carefully. You want to make sure everyone who needs to be insured is in fact insured. This will provide safety and security for everyone.
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