Importance of Homeowners Insurance Maryland
The whole idea behind buying homeowners insurance Maryland is to restore your financial capability following a significant loss. By paying a comparatively small amount in terms of premium to an insurer, you are guaranteed to receive a considerable sum from the insurance company if, in the future, you incur a huge but uncertain loss.
Why You Need Home Insurance
A lot of people may simply neglect or may not be diligent enough to insure their home. It is therefore a good thing that provisions of the law or mortgage contracts often require people to buy an insurance policy.
Although there aren’t too many laws that specifically require you to carry homeowners insurance Maryland, certain forms of liability insurance are typically required such as in the case of car owners. Liability insurance protects you for damages you may have caused on other people or their properties. For example, if you are at fault, you may be obligated to pay for medical bills or have the victim’s car fixed.
Because of the usual requirement to purchase liability insurance, you are presented a great opportunity to buy homeowners insurance as well. After all, buying different types of insurance coverage from the same insurance company usually comes with big discounts.
Thus, if any unfortunate disaster happens to a home, provided it is an insurable disaster like a fire, lightning, or hurricane, you will be spared of the financial hardship that such an unexpected event brings. You will then be thankful that you purchased homeowners insurance Maryland.
Home Insurance Coverage
The results of a survey conducted by the Natl. Association of Insurance Commissioners that appeared in the publication Journal of Financial Planning showed that a lot of homeowners are misguided on their views of what specifically are covered by a home insurance policy.
As many as one-third of the homeowners surveyed are of the mistaken notion that their standard home insurance policy will pay for flood damage, while more than half of the respondents believe that they are covered in case their water line breaks. On the other hand, another one-third of the survey respondents said their insurance company will pay for damages caused by an earthquake, and a smaller percentage said their policy includes mold coverage. The results of the survey may very well apply to Maryland residents as well.
In reality, standard homeowners insurance Maryland does not cover the property damage or destruction caused by the following typical perils:
- Earthquake as this is covered by a separate policy
- Flood damage which is likewise covered by a separate policy
- Acts of war
- Parts of the home or property that are in a state of disrepair that include worn out electrical wiring, plumbing, heating units, air conditioners, and roofing
In general, policies cover damages caused by accidental and sudden events like a hurricane, hale, fire, and theft. Thus, a small leak that has been neglected for months and ultimately causing a significant damage to your home is not covered.
To find the best homeowners insurance Maryland call us today at (301) 668-2233.