Typically, when you borrow money to purchase a home, your mortgage lender will require you to buy home insurance to protect their interests and safeguard your asset. Your home is a valuable asset that you must do whatever you can to protect it from unforeseen future risks. Commercial One Insurance Services offers comprehensive homeowners’ insurance policy to all homeowners in Los Angeles, CA and the surrounding areas.
Unfortunately, most of the homeowners don’t understand what a typical homeowners’ insurance policy is all about and how it works. Here are the top three facts about home insurance that every homeowner should know.
There are Different Types of Home Insurance Policies
Although homeowners’ insurance policies are pretty standard across the United States, some providers or states may offer slightly different policies. The prominent home insurance policy is the HO-3 which protects from all common disasters except any disaster that has been excluded from the policy. This means that you will not be covered for any disaster that is not listed in the policy.
There is also the HO-5 policy which protects both your home structure and personal property against all common disasters. The HO-6 Policy only covers your home structure against specifically named disasters.
Home Maintenance is Critical
Home insurance providers will always want to ensure that your home is in good shape before they cover you. Some insurance companies will deny a claim if they discover that damage occurred due to neglected maintenance activity. So, make sure you conduct regular roof inspections to establish any signs of roof leakage and keep your trees well-trimmed to avoid trouble with your provider when damage occurs.
Not All Damages Are Covered
Your standard homeowners’ insurance provides you with many protections such as protection of your home structure, personal belongings, liability, and loss of use. However, it does not cover everything in your home. Some home insurance policies state that for something to be protected, it must be accidental and sudden.
For instance, if your home has a leaky faucet that caused damage over many months, it will probably not be covered since you ignored proper maintenance. Also, specific natural disasters such as earthquakes and floods are not covered.
Are you a homeowner in the Los Angeles, CA area? Contact Commercial One Insurance Services today for a homeowners’ insurance policy