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Ieuter Insurance Group Blog

All You Ever Wanted to Know About Insurance

Why is Homeowners Insurance Needed?

Similar to car insurance, homeowners insurance in midland is of much importance. Homeowners insurance comes in handy when your home suffers damage or someone is injured while on the property. The financial consequences could be adverse on either occurrence, but home insurance offers you much-needed relief. Homeowners insurance is compound insurance that fuses both liability and hazard insurance.

Liability Insurance

As the name suggests, this insurance covers the personal liability for accidents that happen in your home. For instance, if someone visits your house, and they mistakenly break a bone due to a fall inside your home, the liability insurance may cater to their medical bills guided by the policy limits. Saving the homeowner a lot of money that would have otherwise potentially been spent in the hospital.

Homeowners Insurance is a Mortgage Requirement by Law

When taking up a mortgage loan, more often than not, the house remains the lenders’ collateral. As such, the lending firms will require you to take up hazard insurance to protect their interests in case of any damage to your home. Looking beyond the lender safeguarding their interests, it helps the homeowner in case of other accidents within the home.

Hazard Insurance

Wondering where damages that are caused by natural causes such as storms are categorized? Well, such unintentional damages are covered by hazard insurance. Further, destruction or damages caused by theft, fires, or vandalism are also covered by hazard insurance. There are two options under this type of insurance when it comes to compensation; the replacement and cash value. As the name suggests, the replacement value only pays for enough money to replace the lost or damaged items. Cash value, on the other hand, pays the current market value of a product. For instance, a sofa set worth $600 will not be the same value after three years, according to the insurer; it will have lost some value, so the compensation will be lower.

Special Property Insurance

If you have a home office or some business machinery in your home, you might need a supplemental policy because the homeowner’s insurance does not cover such properties. Additionally, homeowners’ insurance will also not pay for items such as jewelry or even cash lost or damaged in the house. Homeowners insurance will typically pay for items that are classified under the household items. People who do business in their backyard will need to apply for some other cover to insure their machinery and items.

Homeowners Insurance Exclusions

Typical for any insurance policy, homeowners insurance does not cover everything. Natural causes such as floods are seldom covered in this type of policy. The same applies to earthquakes. However, it is important to note that different insurance options that insure you against the two exist in the market. When taking up homeowners’ insurance, pay keen attention to the law of exclusion and understand what it means and how it impacts you financially if the unfortunate happens. For more information, kindly visit

Ieuter Insurance Group,
414 Townsend St Midland MI 48640,
(989) 835-6701

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