Homeowners Insurance Terms

Homeowners know that their home is one of the most important assets they will ever have. So you can imagine how important homeowners insurance is. You shouldn’t go into the process without knowing what you are getting into. So here are some important terms when dealing with homeowners insurance. The more you know, then the easier it will be to get the best deal for you.

Learn These Important Words

Hazard insurance

Whenever your property has physical damage from natural disasters then your insurance covers the damage. If your home is located in an area that requires flood, hurricane or earthquake insurance then you can choose that option to cover those as well.

Mortgage insurance

Private mortgage insurance. If you stop paying the loan, then your insurance will cover the cost of the foreclosure. You have to pay for this, but it’s something that actually protects the lender.

Flood insurance

Don’t get this confused. Flood insurance covers “rising water.” So, don’t expect this to cover rain when it falls through a roof that has holes in it. That’s called falling water. So make sure you get to know the difference in terms and what specific coverage is offered in the companies flood insurance plans.

Blanket insurance

This is insurance that covers condos, neighborhoods insured by homeowners insurance, etc. The main aspect of this policy is that it only covers areas that are commonly owned.

Liability insurance

This helps to protect property owners. If you have a claim filed against you for negligence, damage, or personal injury, then you will have this insurance to help fight it.

Homeowners insurance

This policy covers a few different aspects that you will find you might need. Hazard coverage, coverage against theft and liability, damage to property, and loss of property.

And Now You Know

Just because you now have a better idea of homeowners insurance doesn’t mean you can relax. It’s still important for you to do your research and make sure you get the best deal possible. But use the new words you have learned in order to make the process go smoothly. You won’t regret it.

Additional Resources:

• 12 Ways to Save on Homeowners Insurance
• Intro to Homeowners