When looking for a place to develop real estate, many new home
builders know that they are required to purchase homeowners insurance to be
eligible for financing. There are different categories of homeowners insurance
policies that offer different levels of protection. Generally, the policies
that offer the most cost effective options do not insure the property or
homeowner's belongings, only the property. Many homeowners prefer to purchase
more comprehensive policies that cover the house and the belongings it contains.
Property Protection
New home builders should know that there are two basic components
of a homeowners insurance policy: property protection and liability protection.
The former covers the home, structures attached to the home, other structures
on the property such as storage sheds, and personal property in the home. Some
policies will reimburse the actual value of the property while others will
cover replacement costs regardless of depreciation. Other insurance policies
will cover loss of valuable items, like jewelry, even when the loss was caused
by a non-catastrophic event. Finally, insurance will cover your living expenses
in case the damage is so extensive that you cannot live on your property.
Types of Damages Covered
The property protection portion of your policy will cover damage
caused by ice, storms, fire, theft, and vandalism. The policy will also cover
malfunctions that cause damage on your pipes, provided there is no neglect on
the part of the property owner. To be eligible for coverage, a property owner
has to pay a deductible. Many policies do not cover damage caused by
hurricanes, floods, or earthquakes. Homeowners who live in places where
hurricanes, floods, or earthquakes are prevalent need to add separate coverage
options (at an additional cost).
Liability Protection
The second part of a home insurance policy, liability protection,
covers potential damages when people are injured on your property. If one of
your guests is injured while on your property, the liability protection
coverage will pay for the medical bills of the injured party. However,
liability coverage does not apply if neglect on the part of the property owner
can be proven.
Personal Liability
If you entertain guests at your home, you will have greater peace
of mind from knowing that you have personal liability coverage as part of your
homeowners policy. One of the advantages of this type of coverage is that it
will protect you in case someone is injured in your home and sues you for damages.
In addition, the coverage will help cover the legal costs incurred when someone
files suit against you for injuries sustained while at your home.
When buying a policy to cover a property, new home builders should
know that they can customize their policies to cover many contingencies. One of
the aspects that can be customized is the liability coverage limit. The
insurance policy for your home will have a maximum limit that it can pay in
case you are found liable for guests' injuries while at your home. You can
customize your policy to ensure the limit and deductibles are suitable for your
specific needs.
When looking for new home builders, Portland, Oregon homebuyers
can trust http://everetthomesnw.com/listings/.
Article Source: http://EzineArticles.com/expert/Antoinette_Ayana/1239688
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