What Is Home Insurance?

Are you certain that you have good home insurance

? Have you even thought about it? I never did, until my house fire. Fortunately, we had great home insurance. Several years ago, I had made certain my home and my contents were fully covered. My home insurance policy suddenly paid for itself multiple times over. In those devastating days and minutes after the fire, it was a huge relief to know that my house and contents were completely covered. So, what must you know to buy good, cheap home insurance in Rowlett?

First of all you should know that home insurance is made up of three main categories: house insurance, contents insurance, and liability insurance. In addition, some home insurance companies offer you the opportunity to bundle your auto insurance with your homeowners insurance to save money on both policies.

Home insurance covers the costs in repairing or rebuilding your house as dictated by the policy. Your insurance policy outlines the repair and rebuild options, as well as the types of damages covered. For example, fire is typically covered, but earthquake and flood typically are not. You must get extra insurance to protect your home and contents against loss in those events. Make certain your home insurance also covers any other permanent structures on your property.

Home insurance coverage has two main types: complete coverage and "actual cash value." With complete coverage insurance, I was able to rebuild my home at its estimated value plus a higher percentage to cover the building costs and inflation. This policy was a little more expensive, but it was really worth it. An "actual cash value" policy would have replaced my house at its estimated value, minus depreciation. The policy would have been cheaper, but I would have had to choose to cash out my home.

Contents are insured with the contents insurance portion of the homeowner's home insurance. With a complete coverage policy, the contents are usually insured at a percentage of the home's estimated value. If the homeowner has an "actual cash value" insurance policy, the contents are valued at their estimated value, minus depreciation. If my policy had been "actual cash value," I would not have been able to replace all my contents.

Liability is another important part of home insurance. You need liability owners insurance if someone has an accident on your property. It's the liability insurance that covers any medical costs and court cases.

When it comes to home insurance, the odds are that you won't have a fire, flood or earthquake. But you could. I did. Accidents and those other unforeseeable minutes can be financially devastating. Our fire could have left us financially ruined: no house, no contents. It .was our home insurance that saved us. Take a minute; go online. Search and compare those insurance quotes. Review your contents insurance. Make certain you have a good home insurance policy; one that could save both your house and contents. You never know; you might actually need it. I did.

by: Helena Khalili

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