Are you a potential or a new owner? Have you ever wondered what your home insurance will cover? Homeowners insurance offers you financial protection against damage to your home due to damage to your home, natural disasters, theft and other unfortunate accidents.
There are 4 standard areas covered by your regular homeowner policy
- The physical structure of your home.
- Your personal belongings inside the house.
- liability protection
- Coverage for additional living expenses.
Cover for the structure of your home
- Your policy must pay for repairs or rebuilding of your home caused by the fire, hurricane, hail, lightning or other disaster listed in your policy (read your policy carefully before signing up!).
- Even independent structures such as garages, tool sheds or gazebos are covered by some policies; Again, check with your agent and read your policy carefully.
- It is important to remember: a standard policy does not compensate for damage caused by floods, earthquakes or ordinary wear and tear. When buying coverage for your home facility, keep this general guideline in mind: Buy enough coverage to rebuild your home.
Cover for your belongings
- It covers things inside your home, such as furniture, clothing, play equipment, and other personal items that are stolen or destroyed in a fire, hurricane, or other insured disaster.
- Coverage is typically 50 to 70 percent of your home's structure insurance. You should do an inventory of the home to see if this is enough coverage for you.
- Note: Personal effects coverage includes off-site archived items, which means you're covered anywhere in the world. Some companies limit the amount of insurance you have on your property to 10 percent - double check and read carefully before signing your policy.
- Keep in mind that expensive items like jewelry, furs, artwork, collectibles, and silverware are covered, but there are usually dollar limits if they are stolen. You may wish to purchase additional insurance to fully cover these items.
liability protection
- Liability is your legal protection in the event of personal injury or property damage lawsuits for you or your family members.
- Pay for damage caused by your pet. For example: if your child or pet destroys someone's property, you are covered. The liability portion of your policy pays both the costs of your defense in court and any court praise, up to the limits set out in your policy documents, so again, check your policy.
- While Liability Protection provides no-fault medical coverage for someone injured in your home. But remember, you don't pay your family's or pet's medical bills.
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Additional living expenses (ALE)
- The additional living expenses cover the extra cost of being away from home if you are unable to live there due to damage caused by an insured disaster.
- This coverage covers hotel bills, restaurant meals and other expenses, in addition to normal living expenses and expenses incurred during the home renovation.
- ALEs have limits and some have time limits - talk to your agent and find out what restrictions exist on your portion of ALE.
For more information on home insurance, you can visit our dedicated section on our website. And remember: your insurance policy is a contract, make sure you read and understand it before signing it so there will be no surprises when you make a claim later.