Your home is your castle, a place for your children to grow, for your friends and family to visit, an investment in your future. Yet, a home is also a place where accidents happen, fires start, dogs bite, visitors slip and fall. For that reason, financial institutions almost always require home buyers to have homeowners’ insurance as a condition of obtaining a mortgage. A standard homeowners’ policy insures the structure of your home and other buildings on the property, such as the garage. It also covers personal possessions inside the house, including furniture, appliances and clothing. The policy should also cover legal expenses in case a lawsuit results after the accidental injury of someone on your property. Most homeowners’ insurance policies exclude coverage for damage caused by earthquakes, hurricanes, floods, and mold that results from excessive humidity, leaks, condensation or flooding. Mold is, however, usually covered if it results from a sudden or accidental event, such as a burst pipe. Look for a homeowners’ policy that covers the replacement value of the property and provides at least $100,000 in liability insurance. It’s also a good idea to have an umbrella policy in case you are successfully sued for more than the standard liability coverage. Umbrella policies are not expensive and they supplement both your automobile and homeowners’ policies.
The Insurance Information Institute reports that 96 percent of all single-family dwellings in the United States have homeowners’ insurance policies. New York is a one bite state, which means a dog owner may be held liable if the victim of a dog bite shows the dog is vicious and its owner knew or should have known about the dog’s vicious character. In some states, the pet owner may not be held liable the first time their dog bites someone. A landlord’s homeowners’ policy typically does not cover damages to a renter’s personal property. Renters’ insurance, while not required by law, protects personal items, helps with temporary housing, and provides liability protection if the tenant is sued. “Perils” are specific causes of a loss, such as windstorms, fire, floods or theft. A “named-peril” policy covers the policyholder only for the causes of loss named in the policy. An “all-risk” policy covers all causes of loss, except those that are specifically excluded.
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