Homeowners Insurance in Baltimore – What Does It Cover?

Homeowners insurance is a comprehensive term given to different kinds of covers that a house owner receives as security for the home. In other words, this policy is a complete property insurance plan. It could be one of the most useful homeowner insurance covers that anyone in Baltimore can receive. Here is an elucidation of the policy.

When can a homeowner use the policy?

The insurance includes two major kinds of covers.

* Personal cover that includes loss of goods in the house and any kind of loss of use that results in additional living expenses

* Liability cover that includes accidental damage to the visitors to the house due to the owner’s fault or other factors

Some kinds of covers are excluded and a separate policy needs to be purchased to avail these covers. The exclusions can be summarized into three categories:

* Damage due to natural disasters such as floods

* Man-made violence such as war and riots

* Damage due to pests such as termites

The policy is applicable only when the owner is present at home. Besides homeowners insurance policy, there is another insurance scheme called Dwelling Policy that offers the same kind of cover. However, the extent of cover is wider and extends to houses that are very old and those such as seasonal homes which are not continuously occupied.

What is the cost of the policy?

The cost of the policy varies from one house to another. The major criterion is the condition and structure of the house. Since the policy is used for home repairing, cost of policy is subject to how much it will cost the insurance company to get the home repaired or rebuilt depending on the damage. Inflation rates are also a consideration while fixing cost because inflation directly affects expenses incurred in repairing the home.

Premiums vary depending on location of the house as well. A home that is considered to be located in a high risk zone comes with higher premiums when compared to homes located in low risk areas. In Baltimore, for instance, houses located in the northern parts of the southeastern districts are charged high premiums because of the high violence rate in the area. Proximity to emergency services such as police stations and fire stations is also a major consideration. The risk factor is decided based on climatic activity as well as the character of the neighborhood.

Premiums are lower for homes that are well protected against disasters. Strong fire and burglary alarm systems, water sprinklers, flood insulation, hurricane shutters and locks that are inspected and approved by the insurance company help in reducing premiums.

Importance of the policy

Homeowners insurance in Baltimore is a basic prerequisite if the home owner requires a mortgage on the house. The only case in which mortgage is sanctioned without this insurance is if the value of the land on which the home is built is greater than the loan amount.

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