Property insurance covers a wide range of policies that protect property owners with a mortgage encase any unforeseen circumstances arise. Insurance on the property helps to provide protection in the means of a financial reimbursement encase of damage or theft or to a person other than the owner should someone be injured on the property.
There are many aspects involved under the insurance umbrella when you’re buying a property – such as homeowners’ insurance, flood assurance insurance, and renters’ insurance.
Property Insurance can cover you against numerous things such as;
- Weather-related damage – wind, ice, hail, snow, and lightening are some issues that may cause a property owner to need to claim using property insurance
- Fire and smoke damage
- Contents insurance
- Structural insurance
- Liability – this covers when someone other than the actual property owner is injured in the property and decides to pursue a claim
There are sometimes exceptions where property insurance won’t cover you, these would need to be checked before deciding if you can claim. These exclusions can include;
- Earthquake damage
- Drain and sewer backup damage
- Standing water
- Seeping water
- Acts of war or terrorism
There are usually three types of property insurance that we will go through with you when you speak to our experts for advice;
- Replacement Costs – This insurance will cover the cost of replacing or repairing damage caused to the property or items, this is based on the replacement cost value not the cash value of the items.
- Actual cash value cover – This coverage will cover the cost to the owner or renter of the replacement value minus any depreciation. For example, if something was damaged that is 5 years old you will get the value of the 5-year-old item, not a new one.
- Extended replacement costs – This insurance will pay in excess of the coverage limit if costs have increased but usually, this is a maximum of 25% increase. The limit is the maximum amount of benefit the insurance company will cover you for.
There are many considerations to take into account when choosing the right protection for you. The experts here at Warrington Mortgage Centre can give you advice and guidance on the best option for you as an individual. Contact us today for more information. We have expert advisors who can discuss your needs to help provide the best protection for you, your family, and your property.