Homeowners Insurance

When you buy a home you are required to purchase homeowners insurance. However, many will allow their insurance to lapse if it is not required by the HOA, once the home is paid for and that can be a serious mistake. Especially, if you’re a black family that owns a home. When a black person owns a home and it’s not insured, many times when it’s time to sell the home, buyers will use that as a means to make the price of the home go down. Being that black homeowners already have a hard time purchasing homes, that’s just added stress.  Homeowners insurance is a form of property insurance that covers losses and damages to an individual’s residence, along with furnishings and other assets in the home. Homeowners insurance also provides liability coverage against accidents in the home or on the property.

A homeowners insurance policy usually covers four kinds of incidents on the insured property. they are

• Interior Damage
• Exterior damage
• Loss or damage of personal assets/belongings
• Injury that occurs while on the property

When a claim is made on any of these incidents, the homeowner will be required to pay a deductible, which in effect is the out-of-pocket cost for the insured.

Every homeowner’s insurance policy has a liability limit, which determines the amount of coverage the insured has should an unfortunate incident occur. The standard limits are usually set at $100,000, but the policyholder can opt for a higher limit. In the event that a claim is made, the liability limit stipulates the percentage of the coverage amount that would go toward replacing or repairing damage to the property structures, personal belongings, and costs to live somewhere else while the property is worked on.