When you are looking for homeowner’s insurance in Yuma or San Luis Arizona, one of the best options that you have is RL Jones Insurance and MVS. But before you select your homeowner’s insurance, it is important to know some things about homeowner’s insurance.
What Is Homeowners Insurance?
A homeowner’s insurance is the type of insurance that you can get to protect you from losses and damages in your individual house and assets in the home. In addition, homeowner’s insurance also delivers liability coverage against accidents in your property or home.
How Homeowners Insurance Works
One of the things that many people don't know is that when you finance your home, you will be required to provide proof of insurance on the property.
While many people believe that they will need to buy insurance directly from the lender, this is not the case. You may choose us, for example, if it works best for your needs and budget.
The payments that are made toward homeowner's insurance policy tend to be included in your monthly mortgage payments. As the lending bank gets your monthly payment, it will then transfer the amount of the insurance to an escrow account.
What Does the Homeowners Insurance Cover?
Homeowners insurance usually covers 4 different types of incidents on your insured property: interior damage, exterior damage, loss or damage of personal assets/belongings, and injury that arises while on the property.
So, when a claim is made, you, as the homeowner, will need to pay a deductible. Let's say that a claim is made on interior water damage that occurred in your home.
Let's say the cost of putting the property in livable conditions is $10,000. This amount is estimated by a claim adjuster. In case the claim is approved, you will then be informed of the amount of your deductible. Let's imagine that amount is $4,000. In this case, the insurance company will need to issue a payment of the remaining $6,000.
Please note that the higher the deductible in your insurance contract, the lower your annual and monthly premium on your homeowner's insurance policy.
One of the things that you need to keep in mind is that all homeowners insurance policy has a liability limit. This limit determines the amount of coverage you have in case there is an accident in your home or property. In most cases, the standard limits are set at $100,000 but you can choose a higher limit. So, in case a claim is made, this limit determines the percentage of the coverage amount that you will have when you need to replace or repair damage in your property structure, the cost to live somewhere else when the property is being fixed, and personal belongings.
Keep in mind that earthquakes, floods or other natural disasters tend to be excluded from the standard homeowners insurance policy. Nevertheless, if you live in an area that is prone to these natural disasters, you can get a special coverage. While this is true for earthquakes and floods, in most cases, tornadoes and hurricanes are included in the standard homeowners insurance policy.
Stop by and ask about our affordable homeowners insurance rates, we have two offices in Yuma and one in San Luis, or call us at (928)627-8212