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There are so many types of insurance policies that you may begin to wonder why people need all this protection? After all, risk is a part of life, right? There are policies that offer protection for hazards that you might never face in your lifetime (e.g., flood insurance in a desert). However, there are types of insurance policies that you do need in your life for extra support and protection. Homeowners insurance is one of them.
Homeowners insurance is not always required but is always important
States do not require that you carry home insurance the way they mandate auto insurance; however, lending institutions, such as banks and home equity lenders, will require homeowners insurance as a mandatory prerequisite to securing a mortgage loan.
These lenders invest in your property, and they do not want to see it go up in smoke (literally or figuratively). Lending banks want protection against calamity, and having a homeowner default on the mortgage of a damaged or destroyed house creates a significant financial loss. Homeowners insurance gives a lender some security in the event of a disaster. That protection is a significant reason why mortgage lenders will insist that a house buyer carry a homeowners insurance policy.
While it is still possible to live without home insurance, the consequences of not having a policy could be catastrophic. Without insurance, you could lose your home to a total loss and risk not having the
money to rebuild. Another important part of a homeowners insurance policy is the liability protection it affords. This liability coverage can provide protection if someone sues
you or files a claim against you after being injured on your property. It can also provide coverage if you accidentally damage someone else's property.
Personal property and home insurance
Personal property coverage is a significant part of a homeowners insurance policy. It covers belongings, which can be items that are extremely valuable to you and your family. Personal property can include the personal items in your home, but a homeowners policy can also be tailored to provide specific protection for high value objects such as antiques or jewelry. And remember, a good policy will afford protection for your possessions both inside and outside your home.
Other definitions are included in a homeowners insurance policy and can help determine if the policy covers the risk.
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Homeowners insurance policies come in two categories: special peril and named peril. Special peril policies protect the insured’s dwelling and other structures from any kind of damage, unless the damage is expressly excluded in the policy. A named peril policy limits coverage for the dwelling and other structures to those perils explicitly listed in the contract.
Our Homeowners Platinum Policy (also called the HO-3 policy) is a special peril coverage policy that can provide you with the broadest coverage for your home and provides coverage for personal belongings for the following named perils:
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Hail or windstorm
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Explosions
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Smoke damage
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Theft
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Water damage
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Pipe freezing
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Damage from the weight of snow, ice or sleet
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Falling objects
Modern times have changed the need for a homeowners insurance policy.
Homeowners insurance traditionally protects the structure(s) and personal property. The last few years have introduced many changes; a house is often not just a home anymore, but can also be an Airbnb or the site of a home-based business. Specific coverage might be required by a Homeowners Association (HOA) for a condo. A homeowners policy can include coverage for personal property such as jewelry and firearms, and also some boats and watercraft. Safeguarding a home might require a bundle of business that allows for discounts, but how much insurance guarantees the number of discounts you qualify for?
A buyer has a lot to think about. Nobody wants to pay premiums for protection that is not needed, but being underinsured is hazardous. Professional advice from an experienced insurance agent is a welcome
service for a flustered consumer. East Street Insurance makes
use of knowledgeable and experienced insurance agents.
We don’t just sell you insurance, we teach you about it too.
Consumers can find it repetitive listening to insurance agents speak about what types of homeowners insurance they need. Some potential buyers also get suspicious and wonder if the agent is trying to sell unnecessary coverage. We respect that buyers may have done their homework when it comes to insurance and are knowledgeable about the different types of policies that exist. We are not going to push unneeded and expensive coverage on anyone.
East Street Insurance explains the various insurance options to you, and we will give you thorough answers to all your questions. If we do not know the answer right away, we will find the answer and get back to you.
Some things to think about
As a consumer, you have the choice to shop at other insurance companies. East Street Insurance respects your choice, and we encourage you to talk to one of our agents to review coverage options and ensure you also get qualifying discounts.
We mentioned bundling before, and it might be a smart financial move for you. East Street Insurance can give you a discount for placing your home and auto with us. Ask us about what categories of homeowners insurance we carry that will make your homeowners protection the best for your particular needs; ask us about discounts at the same time! You will be pleasantly surprised at how much you can save.
That’s not all!
You do not have to worry about remembering to make your premium payments. You can pay them monthly (electronic fund transfer (EFT) only), quarterly, semi-annually or annually. And, if you pay your premium in full prior to the policy term, you could get a full payment discount. Discover more ways to save here. Other insurance companies will share discount information if you ask, but you can simply take a look at all of the discounts we offer yourself! We are happy to go one step further and discuss any discount you have questions about or are interested in. We want you to feel that a relationship with East Street Insurance is in your best interest.
We invite you to contact us at your earliest convenience. We can give you professional advice on which of our products are best suited to your needs and give you a homeowners insurance quote online. We want to provide you with the best protection possible. We welcome the opportunity to answer your questions and be of service to you.