Buying A Home – Is Home Hazard Insurance Really Important?

Hazard insurance functions to compensate you and the mortgage company for property damage as a result of fire and smoke, hail, strong winds, lightning storms, explosions, volcanoes, riots and vandalism, theft, water damage, and other similar Acts of God. If a tree crashes into your roof during a wind storm or a thief breaks into your car to steal your stereo, your insurance will replace or repair the damage. Some policies even cover theft of belongings transported outside of your home such as in the car or at school.

The heart of your homeowner’s insurance covers damage to your house and everything associated with it. But the basic coverage isn’t adequate to give you full protection. You’ll be given the option to purchase additional coverage for:

1) Additional structures besides your house such as the garage, tool shed, swimming pool, detached guest unit, as well as fixtures attached to the land such as brick walls, concrete driveways, sidewalks, and wood fences.

2) Personal property like you’re clothes, expensive art, fancy jewelry, rare coin collections, and high end electronics, up to a predetermined replacement value.

3) Home business property such as computers, workstations, and copiers. Business inventories can also be protected in a policy.

4) Loss of use-Coverage is provided for your daily necessities such as rent, motel stay, and meals, less the amount you would spend on daily necessities, while your house is being renovated after suffering a loss.

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