Owning a home is one of the biggest investments that one can make in the life. Protecting the personal assets is not only smart, but this is also really important. So, the best method to do is to buy a home owner warranty insurance policy. Purchasing this type of coverage will cover your belongings, home, system components and appliances if those need repair or replacement because of any reason. But knowing about the details of this type of insurance and why you need it actually can often be tricky.
Here in this article, you will find the details:
What is homeowner warranty?
The home owner warranty insurance policy mainly covers accidental damages to the homes and belongings because of storms, theft, fire and some types of natural disasters. Basically, there are four primary areas, which are covered under this policy and these include: personal property in case of loss, theft or damage, the exterior and interior of your home, and general liability, which can arise while any person becomes injured while on the property.
Importance of homeowner warranty:
This type of insurance is actually mandatory and therefore banks will usually need you to get this type of insurance before issuing mortgage on the homes. This type of policies can be renewed yearly and the average annual cost is around $300 and $1000. Besides, this type of policy also offers a deductible that is what you need to pay while a claim is made. Therefore, this policy will take care of all the necessary details.
For instance, in case a pipe breaks and your kitchen gets flooded, then an insurance adjuster will visit your place and fill out a claim for repairing or replacing the damaged items in your home. After the claim gets approved, the insurance provider would deduct the deductible amount from the claim and therefore will issue a payment for the rest of balance to repair the home. Therefore, this type of deductible can also assist you in lowering the premium rate of the home owner warranty insurance policy on a yearly basis. It means, the higher your deductible will be, the lower the yearly home insurance would cost.
Benefits of homeowner warranty:
- This type of warranty covers the accidental damages to both the exteriors and interiors
- Here the possessions are covered irrespective of old or new
- Easy renewal. All you need to do is to pay the premium amounts on time