The Importance of Home Insurance

What do people mean when they talk about the American Dream? For millions of folks, the idea is more than a mere concept. Though it has never truly been defined, many believe Thomas Jefferson came closest when he talked about “Life, Liberty, and the pursuit of Happiness.”
Before there was even a nation known as America, people dreamed of one thing:Land. More specifically, they dreamed of land and a home. To many folks, home ownership is at the heart of the American dream.
But being a homeowner in America isn’t easy and it certainly isn’t cheap. Compared to the rest of the world, homes in the U.S. are quite pricey. In addition to the mortgage, property taxes, and the monthly heat Small Bedroom Ideas Ikea 16 and electricity bills, a homeowner should also purchase insurance. We say should because unlike car owners, homeowners are not required by law to buy insurance. Of course, the overwhelming majority of them do.
What are the benefits? The home is the single largest investment most people will ever make. It is also one of the riskiest ones. Homes can been damaged or even destroyed in a myriad of ways. There are fires, floods, earthquakes, tornadoes and hurricanes. Accidental damage is also quite common. Insurance is the best and most affordable way to protect your family from financial loss.
As a general rule, most standard insurance policies have four common components or four different ways that they protect homeowners. The first and most important component is the protection they provide for the actual structure. A home that is fully insured could be burnt to the ground and the homeowner probably wouldn’t lose a dime. The insurance company would pay to have the home rebuilt.
Home insurance also covers the contents of the home against damage, loss, or theft. Homeowners are instructed to take pictures of their most expensive items and store them in a safety deposit box. That way if the items are lost or stolen, the homeowner can file an accurate insurance claim.
Few homeowners are aware of the fact that home insurance also includes liability protection. This component protects the policy holder from accidents that occur in his home or on his property. For example, if someone slips and breaks their hip in his driveway, the Garden Decoration Ideas Pictures insurance company will generally pay the medical bills. Liability insurance also covers the costs of repairs to other people’s property. For example, if one of your trees falls on your neighbor’s car during a storm, liability insurance will pay for the repairs.
The fourth and final component of home insurances rarely needed because it is only necessary when a home is damaged beyond repair. If, for example, your home burns to the ground, the insurance company will reimburse you for additional living expenses. This includes rent, hotel bills, food, and transportation fees. Homeowners should insist on coverage that is equal to about twenty percent of the total coverage on his home.

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