What Is Home and Auto Insurance?
Home and auto insurance protects the policyholder from large expenses resulting from loss, damage and injury associated with his or her home, property and automobile. The two types of insurance - homeowners and automobile- are separate products but are frequently bundledi, or purchased together, which usually results in a discounted rate.
Most states mandate that anyone who is a licensed motor vehicle driver must purchase auto insurance, and many mortgage lenders require homeowners to have insurance before they can take out a mortgage. Insurance companies and specific plans will differ in what they offer, but there are common categories of coverage.
Homeowners insurance may offer the following:
- Dwelling coverage - Covers repairing or rebuilding damage to the structure of the house
- Other structures coverage - Covers other buildings on the property such as a garage or gazebo
- Personal liability - Covers injury or damage to others and their property if the policyholder is held responsible
- Contents or personal property coverage - Covers clothes, furniture, electronics and other items in the home if damaged or lost due to a covered cause
- Loss of use coverage - Covers living expenses in the event of a covered loss (such as temporary houseing after a house fire)
Auto insurance may offer the following:
- Bodily injury and property damage liability coverage - Covers expenses when the policyholder is legally responsible, including damages, medical bills and court costs
- Uninsured and underinsured motorists coverage - Covers damage or injury caused by another motorist who is not properly insured
- Medical payments and personal injury protection (PIP) coverage - Covers medical expenses for the policyholder and possibly passengers following a car accident
- Comprehensive coverage - Covers damage from events such as fire, theft and vandalism
- Collision coverage - Covers damage after a collision with other vehicles or objects
- Replacement cost or gap coverage - Covers the replacement value of a severely damaged car rather than the lesser, depreciated value
Home and auto insurance has year-around enrollment which allows individuals to sign up or "shop" whenever the need arises, such as when they acquire a new house or car.
Contact Hummel Group today to learn more about the home and auto insurance options available to you. You can also get a quote here.