Homeowners insurance is more than just insurance on a house. While policies offer financial protection for damage to your home's structure, it's important to understand the other facets of this type of insurance.
Homeowners insurance is typically required by mortgage lenders. Many banks or lending institutions won't approve you for financing unless you have homeowners insurance coverage, so it's important to find a policy that works for you.
Homeowners insurance policies offer three main types of coverage: actual cash value, replacement cost and guaranteed replacement cost. Actual cash value coverage covers the cost of your home and the value of your belongings after depreciation. Replacement cost covers the value without depreciation.
Guaranteed replacement cost is a form of coverage that protects you against inflation by covering costs over your normal coverage limits.
Homeowners insurance policies usually have six distinct components. These individual components are:
The first three categories protect you financially from property damage and the costs to repair or replace. Loss of use coverage helps pay for expenses incurred while you're waiting for repairs or replacements to your home.
Liability coverage is there in case you accidentally cause damage to another person's property, while the medical bills portion can reimburse other people who incur minor injuries on your own property.
While this is a basic overview of what your homeowners insurance might cover, the details are different with every insurance company. There are certain types of property damage, such as flood or earthquake damage, which require a separate policy.
Knowing the exclusions and special conditions of your own homeowners insurance policy is crucial for making informed decisions about other types of insurance you might need. In addition to protection from natural disasters, this might include umbrella policies or additional personal liability protection.
Discuss the details of your policy with your insurance provider for a better understanding of your coverage limits and any applicable exclusions. Not only will you be better protected financially, you'll also have more peace of mind if property damage occurs.
Susan Shuxian Hu has been a dedicated realtor serving in Silicon Valley since 2010. With great passion, outstanding negotiation skills and due diligence, she has helped many buyers and sellers in their real estate needs. Living in West San Jose for more than 14 years, she has broad knowledge in Cupertino, West San Jose, Los Altos and Saratoga. She has enormous patience working with buyers and never tired of showing all possible properties that may fit client’s needs. Clients appreciate her best service to their satisfaction. She specialized in luxurious real estate purchase in Los Altos, Cupertino, Saratoga and Palo Alto. She also helped friend and past client’s referral working in San Francisco, Foster City and far reached Bay Area.
Susan Shuxian Hu was graduated in East China Normal University in Shanghai with bachelor and master degrees in Bio science. She came to US in 1989 and earned her Ph.D. in Molecular Genetics in Texas A&M University in 1996. After one year of postdoc in Southern Florida University in Tampa, she moved back to Orlando with her family and started working in Lucent Technologies. In 2002, Susan moved to California, Silicon Valley joined a start-up company. Since then she worked in high tech Corporation till 2009. Driven by her dream job pursuing, she found her passion working in sales by helping people in real estate after one year of education in De Anza business and real estate law study. Since then, she has been serving many people in Bay Area for their real estate needs.
With bilingual advantage, she has been actively working with Chinese immigrants as well as local engineers and residents. With rich high tech background and connection with Chinese community, Susan has served in luxurious real estate in last a couple of years.