Home Insurance Proves Invaluable When Disaster Strikes

There’s never a convenient time for disaster to strike. It never waits around until the day you receive a bonus check or 10 minutes after you’ve picked up the winning lottery ticket. Because of the unpredictability, you need to make your own provisions to deal with disaster when it comes around.

Chances are you have a savings account or emergency fund that you contribute to. That’s a great start.

However, home insurance may kick your efforts up a notch. Just make sure you have the right coverage for your needs, your lifestyle, your home and your location. For instance, someone living in Indiana may not need to purchase insurance coverage for a hurricane. However, for those living in Florida, hurricane coverage is as essential as fire coverage in California. In addition, there are many locations where homeowners will need insurance coverage for a flood.

One key bit of information about flood insurance is that you don’t need to live in a flood zone to need this vital protection. In fact, FEMA reports that between 20 and 25 percent of all flood claims occur outside of areas designated as high flood risks. And those numbers only include the homes that HAVE flood insurance protection.

TYPES OF HOME INSURANCE YOU DON’T WANT TO LIVE WITHOUT

Home insurance comes in a variety of shapes and sizes. It’s meant to not only offer financial protection to wealthy homeowners, but also to those of more modest means who need protection against disasters. The following coverage includes the types of insurance that are truly invaluable when disaster strikes:

• • Liability Insurance– provides you with financial protection and legal expenses up to the policy limit if someone is injured while visiting or passing through your property, or even if one of your trees fall through the neighbor’s window. Yikes!
  • Property Insurance– helps you make repairs to your home, condo, etc. if it is damaged by wind, hail, fire, or any other covered damages.
  • Flood Insurance– not covered by your standard home insurance policy, flood insurance can replace items destroyed by a flood, or repair homes that are damaged by them.

• Personal Belongings Protection – helps you replace items you lost due to a covered event like fire, theft, etc. Make sure you discuss replacement value protection with your insurance agent, and see if it’s the right choice for you.
• Loss of Use Coverage– provides you with reimbursements when you’re forced to make alternative living arrangements if your home is under repair.
• Umbrella Insurance– when your liability protection isn’t enough, umbrella policies offer additional coverage without forcing you to pony up the funds for legal representation or judgments awarded against you (once again, up to the coverage limit).
• Valuable Item Protection– most items in your home are protected by the property damage coverage of your insurance policy. However, that protection has limits, and if you have any valuable items or collectibles that may depreciate immeasurably, this protection could help cushion the financial blow.

Each type of coverage can offer outstanding protection if you get the right amount to suit your needs. Working with an insurance agent can help you decide what’s best for you.