If you own your own property, you will have made a very big investment that needs to be property protected. The best way that you can protect this investment is by making sure you have the right type of insurance coverage in place at all times. For homeowners, a practical necessity at all times is to have homeowners insurance in place. This type of insurance will provide you with a variety of types of coverage and is often a requirement under a variety of different types of agreements and contracts.
When you have a homeowners insurance policy in place, you will receive a number of different types of coverage. The first type of coverage that you will receive will be on your actual dwelling. This will provide you with coverage for damage that is caused by a fire, storm, or other unexpected casualty. It will then provide you with coverage up to the predetermined amount set forth in your home insurance policy.
The coverage will also provide you with coverage in the event of theft of vandalism. If your property, or contents within it, are damaged or stolen by someone else, you will receive reimbursement and coverage from your insurance company. However, if you have jewelry or expensive collectibles, the coverage on those items may need to be purchased through a separate insurance contract rider.
Homeowners should also make sure they have insurance due to the liability protection that they will receive. All property owners take on risk whenever someone is at their home. If someone is injured at your property, you could be responsible for damages. The home insurance policy will provide you with protection for those situations.
When is it Required?
You will be required to have home coverage in place whenever you have a mortgage outstanding. If you have a loan outstanding, you might be required by the loan to escrow your payments each month. The lender will then make the payments for you to ensure coverage remains in place the whole time. You condo association, if applicable, may also require that you carry insurance on your home.