Homeowners Insurance

Purchasing a home is a significant achievement in one’s life. However, homeownership also comes with the responsibility to safeguard your investment against the unpredictable with homeowners insurance. Homeowners insurance plays a vital role in providing peace of mind and offering financial security in the face of unforeseen circumstances. 

What Is Homeowners Insurance? 

Homeowners insurance is a type of insurance designed to protect homeowners from financial loss due to damage or destruction of their homes and personal belongings. It can provide coverage for a range of risks, including damage caused by natural disasters like fires, storms, or earthquakes, as well as incidents such as theft, vandalism or liability for accidents that occur on the property.  

Homeowners insurance typically consists of several components, including dwelling coverage, personal property coverage, liability coverage and additional living expenses coverage. The specific coverage and policy limits may vary depending on the insurance provider and the homeowner’s needs. By paying regular premiums, homeowners can gain financial protection and peace of mind, knowing they are financially protected after unforeseen events. 

Is Homeowners Insurance Included in a Mortgage? 

Homeowners insurance is not included in a mortgage by default, but it is often a requirement imposed by mortgage lenders. When you use a mortgage to purchase a home, the lender has a vested interest in protecting their investment. They want to ensure that the property is adequately protected in case of damage or loss, so they typically require borrowers to obtain homeowners insurance. 

Are Foundation Problems Covered by Homeowners Insurance? 

Generally, homeowners insurance does not cover foundation problems that result from normal wear and tear or maintenance issues. Foundation problems typically fall under the category of gradual deterioration or maintenance-related issues, which are considered the responsibility of the homeowner. Common foundation issues usually not covered by homeowners insurance include foundation settling, cracks due to soil movement, or damage caused by poor construction or design. 

However, there may be certain situations where homeowners insurance could cover foundation problems. For instance, if the foundation damage directly results from a covered incident, such as a sudden and unexpected plumbing leak or a tree falling on the house during a storm, the resulting damage to the foundation might be covered. 

Is Hazard Insurance the Same as Homeowners Insurance? 

Hazard insurance and homeowners insurance are terms that are often used interchangeably, but they are not exactly the same. In essence, hazard insurance is a subset of homeowners insurance, providing coverage for specific perils that could damage your home. When people refer to hazard insurance, they are often referring to the dwelling coverage portion of their homeowners insurance policy. 

Contact Jordan Insurance Services & Associates to discuss your homeowners insurance needs. We can help make recommendations specifically for your home.