Homeowner’s insurance is an incredibly valuable and beneficial policy for homeowners to have, but it is necessary to understand what traditional policies do and do not cover. Once you familiarize yourself with the intricacies of various plans you will be better educated to make the proper decision when selecting your desired level of coverage.
What’s Covered In Homeowner’s Insurance?
The majority of homeowner’s insurance plans will cover dwelling and other structure protection, personal property protection, natural disaster protection, and bodily injury liability protection. Dwelling and other structure protection plans cover damage to your home and other structures that are directly connected to the home, such as the garage. Personal property protection covers damage or loss of personal property within the dwelling. Natural disaster protection covers your home should a natural disaster cause damage, but note that natural disasters such as flooding and earthquakes typically are not covered. Finally, bodily injury liability protection typically covers injuries to individuals while on your property.
What Is Not Included In Homeowner’s Insurance?
As mentioned above, two of the major natural disasters that are not covered by homeowner’s insurance are flooding and earthquakes. There are specific insurance plans that cover flood damage and earthquake damage, but you’ll find that the vast majority of common homeowner’s insurance plans do not cover these types of disasters.
Homeowner’s insurance does not typically cover home business equipment either. If you are running a business from within your home, small business insurance is required to mitigate your risk.
Personal property over a certain value is also not typically covered unless supplemental coverage is purchased. Items such as expensive musical instruments, artwork, jewelry, and silverware should have their own insurance policy which is dedicated to valuable personal property.
Why You Might Need Homeowner’s Insurance
Homeowner’s insurance is intended to help protect you against the unexpected. You never know when a natural disaster such as a tornado or a lightning strike which causes a fire within your home might occur. Accidents do happen, and a visiting friend or relative can be injured on your property. Homeowner’s insurance is a great protection plan to have to make sure that both you and your property are covered should disaster strike.
Finding the perfect property is an exciting feeling, but its relative location can leave a lot of room for worry. Buying a home in the city is a venture that comes with an entire assortment of advantages and disadvantages. While the location might be close in proximity to businesses, services, and other people, it’s easy to worry about the other aspects of city living. What are the great and not-so-great facets of living on a busy street?
Pro: Access to Businesses and Schools
The chances are high that anyone living in a busy area is within walking distance of any store, shop, or service. Likewise, children have a range of options for education in busier areas; there are often multiple schools to choose from in any given busy area.
Pro: Access to Many Internet/TV Providers
In highly populated areas, a large number of internet and TV providers can co-exist. This means residents have a number of options when the time comes to choose providers. Luckily, it’s often difficult for providers monopolize densely populated areas.
Pro: Sense of Community
Many people that live in busy areas will be quick to share that they adore the sense of community. In fact, a large population is often one of the biggest reasons that people choose to move to bigger areas.
Con: Noise Level
As a street sees more activity, there’s no doubt that the noise level will also be a bit higher than usual. Residents that own homes on busy streets not only hear lots of noise from outside traffic, but they also often hear police sirens, animals, conversation, and more.
Con: Higher Price
It’s no secret that busy areas are a bit more expensive to live in. As anyone would expect, the convenience of city living comes with a higher price. Expect to hand over quite a bit more for a property in a highly populated area.
Depending on the location of the neighborhood, parking can also be a problem. If street parking isn’t allowed, a resident in a big city might have to sacrifice their vehicle or park it a long distance from the property. This can be off-putting for many buyers.
Case-Shiller Home Price Index reports for November indicate that home price growth continues to slow. The 20-City Home Price Index dropped by 0.20 percent to November’s reading of 4.30 percent year-over-year.
The five cities with highest year-over-year home price growth rates in November were:
San Francisco, California 8.90%
Miami, Florida 8.60%
Las Vegas, Nevada and Dallas, Texas 7.70%
Denver, Colorado 7.50%
The five cities with the lowest year-over-year growth in home prices were:
Cleveland, Ohio 0.60%
Washington, DC 1.90%
New York, New York and Minneapolis, Minnesota 1.50%
Chicago, Illinois 2.00%
There were no instances of year-over-year depreciation in home prices for the year-over-year readings, but month-to-month readings indicated that slower momentum in year-over-year home prices is producing negative home price readings on a month-to-month basis. First the good news; although no city included in the 20-City Home Price Index had month-to-month home prices increases of one percent or more, there were some gains.
Month-to-Month Home Price Readings Mixed
According to the Case-Shiller 20-City Home Price Index for November, 12 cities posted month-to-month gains for home prices and eight cities saw home prices decline from October to November.
The five cities with the highest month to month home price growth in November were:
Tampa, Florida 0.80%
Miami, Florida 0.60%
Las Vegas Nevada 0.50%
Los Angeles and San Diego, California 0.50%
San Francisco, which led year-over-year home price growth rates for November, posted a month-to-month gain of 0.10 percent.
The five cities with the highest declines in month-to-month home price growth were:
Chicago, Illinois -1.10%
Detroit, Michigan -0.90%
New York, New York -0.80%
Minneapolis, Minnesota -0.70%
Washington, DC -0.50%
In spite of gloomy month-to-month readings for November home prices for cities included in the Case-Shiller 20-City Home Price report, overall signs of economic growth persist. In separate reports released Tuesday, The Department of Commerce reported that December sales of new homes rose by 11.60 percent year-over-year.
481,000 newly constructed homes were sold in December as compared to expectations of 455,000 new homes sold and November’s reading of 431,000 sales of new homes in November.
Home Sales Should Continue to Increase with Warmer Weather
As warmer weather approaches, it’s likely that overall home sales will continue to increase. Stronger job markets, low mortgage rates and the possibility of relaxing mortgage standards likely contributed to a jump in consumer confidence for January.
Consumer confidence increased from December’s index reading of 93.10 to 102.90, which was the highest reading since August 2007. Analysts had forecasted an index reading of 96.90 for January. Expectations of wage growth, which has been largely flat post-recession, were seen a significant contribution to January’s boost in consumer confidence.