Homeowners insurance meaning

Homeowners insurance is also commonly known as home insurance. This type of insurance usually covers your home and its belongings from any damage.

Remember for you to have this type of insurance you don’t have to be a homeowner. Most landlords you might encounter will want you to have a renter’s insurance. This means that as a tenant you are also allowed to have homeowners insurance coverage.

Let’s say a scenario where you as a tenant you live in an apartment with over 50 people in it. One of the tenant’s gas explodes and courses fire to the entire building.

It is here that you will lose everything in your house through fire if it was not put off at the beginning before it caused a lot of damages.

Homeowners insurance
A home

So if you’re the smart tenant who insured her rental house belongings then it is here where the homeowners insurance will help you.

Homeowners insurance will come through to cover the interior and exterior damages that have occurred to your house and its belongings.

This can happen in the event of either robbery, theft, lighting, flood or other natural calamity.

It is here where the homeowners insurance will cover the loss you’ve experienced by either compensating you or completely building for you a new building and restoring everything.

Your insurer will cover every belonging, by saying this we mean your clothing, furnitures and appliances. They will be bought for you. But in that case where you poorly maintain your house, they won’t be here to help since they don’t do that.

Homeowners insurance will buy for you the above stated items just incase you lost them to the calamity either by nature or by human beings.

What you should remember is that most of the  insurers  will only compensate around  50% to 70% of the total amount of insurance you have with them and  on the structure of your property.

Let’s take a scenario where your home was insured for let’s say around  $500,000 or just any amount, your insurer will give you   $440,000 which is the coverage amount you’ll be compensated by homeowners insurance for your loss.

This type of insurance is not a luxury my friend here you will have to part ways with large amount of money so that you can enjoy the benefits of your insurance. It’s a necessity not a luxury.

Let’s say your that luxury lover of life and you opted to insure all these items you own. Let’s say you own $1000,000 worth of jewelry alone.

Here we have not gone to the the interior properties like the furnitures and stuff. This will need you to insure everything just incase of any bad luck one day.

What should happen for you to get compensation?


There must be a damage caused by either fire or  lightning or earthquakes or storms or floods for you to get any kind of  homeowners insurance coverage let’s say either from Statefarm or Allstate

You might be wondering how does lightening come in here. Let take an example of you sheltering from rain in your own house or a rental and in a moment, our of the blues since it was storm, a lightening struck your house and causes fire.

This will damage all your property since you were not prepared for it and for you to manage to save some of your properties, it will take a while and you might even lose your life in an attempt to save your luxury.

So if you had earlier had a homeowners insurance policy with you. You won’t need to worried about how will you start over from zero. Your homeowners insurance will get all your property covered.

2. Explosion of domestic appliances

In this scenario of explosion from domestic appliances we meant your home machines. You might be owning your blender, fridge, watching, machine, television, cooker, burner and anything that is called domestic machine.

So for example one day you get an accident with one of them. Let say the fridge had things in it and one day it just exploded due to some high voltage or any fault from it.

It is in this scenario where the explosion of the fridge will cause fire which will burn out your building. It will take time before you can get the assistance of the fire fighters.

So it is here where your insurer that is one of the homeowners insurance companies that you used to insure your house will come through and compensate you from the loss. Remember that you don’t have to be a homeowner to have a homeowners insurance policy.

Losses caused by riots, strikes and any malicious damage

In this scenario we take an example of a country. Let’s say your country is having an election period and since during election there are always political differences in most countries during this period,a bad thing occurs.

You find that a political leaders just incites the youth to start rioting and in this process they start the lootings, the burnings of things and any other sort of malicious behavior.

Here as a property owner by bad luck they destroy and steal things in your property, it is here that if you had a homeowners insurance, that you will get covered.

Other losses that if they happen will see you being compensated are these listed below.

List of calamities:

a).  Damage caused by falling aircraft or other aerial devices

b). Bursting or overflowing of water tanks apparatus or pipes

c). Impact by vehicles, animals and falling trees or branches

Like for this instance a large tree which has grown so big experiences wind and the next thing you feel is a fall with a thus in your house. It destroys things inside.

By luck you survive the calamity and the next thing you think of is how will I replace these things? Since you were smart earlier then here your smartness pays off.

d). Accidental death or injuries to domestic employees

e). Legal costs arising out of acts or omissions of the owner or occupier

Loss, accidental damage, and or theft of items covered


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