Acquiring a home is often a major investment decision, yet ironically, sometimes also a decision resulting in great financial loss. Homeowners frequently experience loss through theft or damage to their home, with damage generally arising from accidents or natural causes. It is for these reasons that it is critical for a homeowner to protect his interests, principally through obtaining homeowner’s insurance policies. These insurance policies help reduce your risk by moving the risk of loss or damage to the insurer in exchange for the payment of a premium.
However, obtaining homeowner’s insurance does not mean you are covered for every eventuality. Is this protection absolute, or does it have exclusions and terms and conditions which may affect the extent of your protection? Knowing the terms of your insurance and understanding the implications thereof are important to ensuring that your primary asset is well protected against future loss or harm.