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3 things you need to know about home insurance

When a family in Washington buys a home and purchases home insurance to protect it, they should have peace of mind that the property is protected in the event of an emergency. Unfortunately, there are times when an insurance company may not pay, or a claim may be denied because of something the policy holder was unfamiliar with.

1. Home insurance comes in two parts

According to the Office of the Insurance Commissioner in Washington State, home insurance liability protection covers personal liability, liability and medical payments. Home insurance property protection covers loss of use, personal property, other structures, dwelling, loss of living expenses and additional expenses.

2. Many common events are not covered by the average policy

If a person purchases insurance, they may assume that they are protected from all types of emergencies, but the reality is much different. The Insurance Information Institutes states that some homeowners may need to purchase additional insurance for floods, earthquakes, landslides, mold and volcanoes. Insurance policies also do not cover foundation cracking and settling, damage from rodents or animals, maintenance issues and regular wear and tear.

3. The bank requires insurance for most loans

Those who are applying for home insurance may be required to give the roof type, the square footage and any recent improvements made to the home. For those who get a loan from a bank for their home, the bank requires that there is enough insurance to cover their investment.

If mortgage insurance is cancelled, it is important that the homeowner find another policy quickly. Otherwise, there may be problems if a claim is filed and the insurance company declines it.

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