If you have recently purchased a home, you may likely be asking yourself whether or not it needs any repairs or improvements, what the neighborhood is like, and other similar questions. You may also be interested in learning the best way to protect and take care of your new asset. One of the most effective ways of doing this is by purchasing a homeowners’ insurance policy. Here is a close look at what an owners policy is.
A homeowners’ insurance policy is designed to provide financial protection for your residence and personal possessions. A home and the items it contains can become damaged or stolen due to events such as fires, storms, floods, and theft. The cost of an owners policy typically varies depending on factors such as the age of the home and the materials used to build it, remodeling projects, and whether or not security systems are installed in it.
What Is Covered In An Owners Policy?
A homeowner’s policy typically includes four distinct types of coverages: dwelling protection, other structures protection, personal property protection, and liability protection. Let’s analyze each of these coverages.
Dwelling protection helps cover your home’s physical structure, which can sustain damage due to natural disasters or incidents of vandalism. In many cases, damage resulting from certain events such as floods and earthquakes is not covered under dwelling insurance. Therefore, be sure to verify this – as well as your policy limits – with your insurance company.
Other Structures Protection
As its name indicates, this type of coverage is designed to shield other structures on your property aside from your house. This includes fences, sheds, detached garages, and in-ground swimming pools. Other structures coverage can help pay for repairs after one of your additional constructions becomes damaged for any reason (e.g. a tree falls on your shed).
According to the Insurance Information Institute, other structures coverage is typically a percentage of dwelling insurance. If you plan to upgrade your property by adding constructions such as a gazebo, it may be a good idea to check your other structures limits to verify that you have sufficient coverage to pay for any damage this structure may sustain.
Personal Property Protection
Personal property protection is designed to cover your belongings. This includes clothing, furniture, and appliances. This type of coverage is typically available to both renters and homeowners and serves to repair or replace your possessions following certain incidents, like fires or theft.
There are two different types of personal property coverage: actual cash value and replacement cost. The former type of policy accounts for depreciation to offer repayment based on an object’s current value. The latter policy pays for the amount it would take to purchase a new item at the moment a claim is filed.
Liability coverage protects you against claims arising from damage to other property or injuries to other parties. This often excludes intentional damage (e.g. vandalism) and contractual liabilities. This type of coverage helps pay for any resulting medical expenses or repair costs.
Do You Need An Extended Owners Policy?
An extended owners policy can shield you against additional liabilities such as forgeries, encroachments, or previous ownership covenant violations. You only need this type of policy if you have significant reason to believe you might face any of these liabilities. The probability of these risks occurring often varies depending on factors such as location and your home’s previous owner.
Contact The Title Insurance Experts For Info On A Owners Policy
Reach out to the professionals at Mathis Title Company in Fairfax, Virginia, for more information on homeowners’ policies and title insurance policies. We are dedicated to providing title insurance and other real estate settlement services to individuals throughout Fairfax County.
During the sale and purchase of a home, we will hold all funds being transferred in an escrow account prior to title transfer and closing. After the title order has been approved, we can begin a title search and you will be given a preliminary report to evaluate and approve. Mathis works with several trusted underwriting companies to issue title insurance policies. Depending on your coverage needs, you can choose to purchase either a basic or an extended owners policy.
Once your property title is insured, your insurance policy is valid for as long as you own the property. You may also apply for title insurance binder coverage if you decide to re-sell your home within a few years.
Call Mathis Title Insurance today at (703) 214-4020 or contact us online to learn more about our services.