Ok so what I’ve learned so far is that a home insurance policy is usually a term contract—a contract that is in effect for a fixed period of time. The payment the insured makes to the insurer is called the premium. The insured must pay the insurer the premium each term. Most insurers charge a lower premium if it appears less likely the home will be damaged or destroyed: for example, if the house is situated next to a fire station, or if the house is equipped with fire sprinklers and fire alarms. Perpetual insurance, which is a type of home insurance without a fixed term, can also be obtained in certain areas.
I have a fixed term, and luckily its in place for another 10 years, but boy am I glad I had it. I knew from the beginning it would pay off, and it has. So anyone who lives in a coastal area, I’ve concluded, must get homeowners insurance for your peace of mind.
If we hadn’t had insurance, we would have been in a whole lot of trouble.
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