What are functions of home insurance?

Answer 1

The function of home insurance is to protect the policy holder from sudden and accidental events that cause property damage and bodily injury. The policy holder is compensated with money for damage that is sustained. A premium must be paid to purchase the policy. The amount of premium paid is based on the house being insured and the person needing the insurance. Not all people and homes have the same level of risk. We all know someone we would trust to watch our home and we may know someone we would not let in our house. Not all perils are covered under any insurance policy otherwise the policy would simply say " We cover everything" There will always be something insurance does not cover. What does it cover? Here is a basic list:

1. Fire

2. Theft

3. Smoke

4. Vandalism

5. Wind

6. Hail

7. Vehicles

8. Riot

9. Civil Commotion

10. Earthquake

11. Volcanic ash

12. Lightning

13. Plumbing leaks of all kinds

14. Your dog biting someone

15. Someone falling and getting hurt will at your home

16. You child accidentially pushing over a row of expensive motorcycles

17. You hitting a Golf ball and breaking a window

18. Your lawn tractor running away from you and hurting someone else

19. You canoe or small fishing boat that is damaged. ( not large boats)

20. Logs rolling out of the fireplace

What does homeowners insurance not cover?

1. Flood - Flood insurance is not typically included with homeowners.

2. Maintenace - Long term damage issues.

3. Intentional acts - you intentionally damage your home.

4. Damage from birds, insects, and rodents.

5. Shoddy work done by a contractor or homeowner

6. A damage situation which had occured over months or years.

7. Acts of terrorism or war - Some cover terrorism.