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Protect Your Real Estate Property with Homeowners Insurance

by Melanie Peterson

Acquiring real estate property can be a pivotal moment in one’s life. Having your own home can provide significant life experiences and lessons. One of which is making sure you take the necessary precautions to protect your investments. Getting homeowners insurance in Lexington, KY gives you liability coverage against unexpected damage on your property or your person.

Why Do You Need Home Insurance?

In most cases, if you have a mortgage, the financial institution handling your loans will require insurance. The bank or mortgage company typically does this to protect property value, as it is a financial investment. They will need that safety net to protect their businesses, but in turn, will also benefit you by paying for the unexpected expenses caused by agreed-upon circumstances.

Additionally, deterioration from aging materials or climate conditions affects the liability coverage you will need even when you no longer have a mortgage. For example, if your area is in a hurricane or flood-prone zone, insurance might be the best decision to protect you from yearly out-of-pocket repairs and maintenance costs. 

What Does the Policy Cover?

Insurance can provide a reliable financial backup for property owners if their houses get damaged, but it can offer more. Homeowners insurance in Lexington, KY typically protects you from four kinds of incidents: interior damage, exterior damage, loss or damage of personal belongings, and injury while on the property. 

  • Interior Damage Coverage: You may file a claim if your main living space and the attached structures need repairs from specified circumstances. Calculating the value per square footage of your house can determine how much the insurance company can cover. 
  • Exterior Damage Coverage: The outer parts of your property, like the fence or shed, can also be included in your coverage policy. You can only file a claim for damages caused by perils listed in your policy.
  • Personal Assets Coverage: Your policy may include replacing furniture, home appliances, and other electronics inside your property if they get stolen or damaged. For example, you can file a claim if a pipe in your basement busts open and floods the entire space, damaging your washer and dryer. 
  • Personal Liability and Medical Coverage: This can help you with legal fees and compensation if you or a member of your household accidentally damages property outside your own. It can also apply if someone gets injured on your property or incurs medical bills from your house and its structures.

For example, a part of your wall cladding falls off and hits a person causing a concussion or a fracture. They will have to go to the hospital, and you’ll have to pay a portion of their medical bills, which your insurance can cover. 

Insurance Limits and Deductibles

All coverage policies come with stringent conditions and limitations. The amount of money or coverage you can claim heavily relies on the value of your property and the premium you are paying. However, the good thing about insurance is you can usually negotiate and find the right type of coverage specifications with your provider.

In reviewing the terms of your insurance policy limits, make sure to have a close estimate for the cost of replacing or repairing your house and the items inside. Keeping a list of the actual price or the official invoice in a file or spreadsheet can help immensely, especially for your future insurance claims adjuster. 

Organizing your initial investments in the home can also provide you a clear perspective on what kind of incidents you’ll specifically include in the policy. Your insurance provider may offer coverage for the basic accidental damage. Still, you can also get the “acts of nature” insurance covering incidents like floods, earthquakes, and fire. 

Keep in mind that insurance policies have deductibles if you haven’t reached the agreed-upon duration of paying. For example, if you file a claim and you’ve only paid a premium for one month, it means you haven’t invested enough yet to get the full benefits. You will have to bridge that cost right away if you want your provider to cover the incident immediately.

Getting a homeowners insurance policy provides a comfortable financial safety net if anything unexpected happens. It may not prevent possible damages, but it sure can save you a lot of money if needed. Contact your trusted insurance provider for the best options that fit your needs.

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