Custom homeowners face several decisions and complications before, during and after buying a home. Homeowners insurance is a consideration that arises throughout the process and raises several questions. When you want to protect your home, the policy you purchase is an essential part of the process.
What is Homeowners Insurance?
Homeowners insurance refers to a type of policy that specifically addresses your needs as a homeowner. It protects your home from specific situations and problems so that you do not pay high costs when an accident or complication occurs. While the exact coverage depends on your policy, the plan generally protects against common liability concerns, fires and other common hazards in the house.
Do I Need a Policy?
As a general rule, new homeowners always need a basic homeowners insurance policy. In many cases, a mortgage lender requires insurance until you pay off the loan. Although it is not required by law, the coverage helps you protect your home and finances from common hazards. For example, the policy helps pay for repair costs after a fire.
What is Covered in the Policy?
The exact coverage depends on the policy you purchase; however, most homeowners insurance plans cover common hazards like fires, smoke damage, hail storms, wind storms or damage from a theft. The exact amount of coverage for repairs or replacements vary and some policies set a limit on the amount available for specific situations.
Flood is not usually covered by a basic policy, but some insurance providers offer additional coverage for flooding and rain storms. The coverage for personal property, like jewelry or furniture, usually sets a clear limit. If you have expensive items in the house, then you want to add to the basic policy to protect the item or items.
Who is Covered by the Policy?
Individuals covered under a homeowners policy depend on your situation. Generally, family members or the owners of the property are covered for liability, the loss of personal property and the damage to the property. For example, a child in college is still covered under the policy until he or she no longer lives in a dorm or at home. Elderly parents who live in the house may or may not be covered, depending on the specific details in a policy.
Why Is This Important to Custom Homes
Memphis custom homes are great values, but also face a wide array of weather. Heat, frigid cold, tornadoes, and more are common occurrences in Memphis area. Be sure that your custom home is ready and prepared.