A home is a significant investment, and protecting it with home insurance is critical for homeowners.

According to the National Association for Insurance Commissioners, “Home insurance covers the structure of your home and your personal property, as well as your legal responsibility (or liability) for injuries to others or their property while they’re on your property.” There are four key components of standard home insurance:

— Dwelling coverage covers damage to the structural parts of your home (roof, foundation, walls and so forth).

— Personal property coverage protects other structures or items on the property (such as a shed or fence) as well as furniture, electronics and clothing.

— Liability protection protects the homeowner from financial responsibility for accidents, regardless of fault, and will cover medical bills if someone is injured on your property.

— Additional living expenses/loss of use can provide for temporary housing and living expenses if the home becomes uninhabitable due to a covered loss.

Life is full of both natural and man-made surprises — fire, hailstorm, theft — that can result in costly damage. However, not all damage can be claimed. It’s important to know exactly what’s covered under your specific plan, and equally important to be aware of what’s not covered in your policy. Some natural disasters, such as earthquakes, are excluded from coverage. Things like septic systems, pest infestations and mold also are generally not covered. Sewer backups, flood insurance, expensive artwork or jewelry may require higher or supplemental insurance. If you have specific concerns about whether or not an item or event is covered, make sure you discuss them with your insurance provider.

Costs and claims are rising due to a number of factors, but there still are things you can do to minimize this crucial expense. First, shop around. Ask about discounts (such as for first-time homebuyers or nonsmokers) and research ways to lower your premium, such as getting or upgrading a home security system or raising your deductible. Oftentimes you can receive a discount if you get home insurance from the same company as your car insurance. The money spent on a sound policy is worthwhile to protect against potentially devastating loss.

There are many resources and tools available to help you understand what you need to know to get the most effective policy for your situation. U.S. News & World Report publishes an annual review of the best home insurance companies. You also can check out various websites such as Insurance.com, NerdWallet, Bankrate or Investopedia to get detailed explanations of financial concepts and terms as well as comparisons and advice on financial products.

Kim Foemmel
Foemmel Fine Homes
1 Lumber Street, Suite 207C
Hopkinton, MA
(508) 808-1149
Kim.Foemmel@gmail.com
FoemmelFineHomes.com

The advertiser is solely responsible for the content of this column, which is a paid advertisement.