Homeowner’s insurance provides unique coverage for your home and belongings.
A very comprehensive policy that offers homeowners peace of mind, there is a lot to understand about homeowner’s insurance. Keep reading to find out what kind of protection this essential coverage can provide for the things that matter most to you.
What is Covered Under Homeowner’s Insurance
Homeowner’s insurance is a multi-line policy, offering both liability and property coverage.
If someone is hurt on your property and brings a lawsuit against you, homeowner’s insurance is designed to cover the costs of legal fees, judgments, and settlements.
If your home or property is damaged by covered perils – such as lighting or a heavy snowstorm, vandalism or theft – homeowners insurance has you covered.
Structures That Are Covered
Most standard homeowner’s policies provide coverage for:
Dwelling Coverage: for the main house and connected structures.
Homeowner’s insurance is designed to protect the main structures on your property. This coverage can help with costs for rebuilding your home and attached structures – such as an attached garage – should they be damaged by perils or vandalism.
Other Structures Coverage: for detached buildings and fences
Many standard policies will also cover other structures, which can help with costs for repairing outbuildings on your property – such as a detached garage, tool shed, or gazebo – and fences on your property should they be damaged by vandalism or other covered peril.
Personal Property Coverage: Insurance for Your Belongings
The structures on your property aren’t the only thing that’s covered in the event of burglary, vandalism, or perilous event.
The belongings within your home and detached structures are also generally covered. If there is a fire in your home and your furniture is damaged by smoke, homeowner’s insurance can cover the cost for replacing it. If someone breaks into your house and steals your television, homeowner’s insurance typically covers it.
Imagine you have a guest over for dinner, then as you’re walking them out their shoe catches on a raised brick in your walkway and they take a nasty spill. The result isn’t pretty: your evening ends with an ambulance ride, a hospital stay, and later follow-up doctors visits, and pain medication.
And they are holding you responsible. Homeowner’s insurance can cover the costs of court fees, judgments, and settlements, should someone be injured on your property.
Does Homeowners Insurance Have Your Home Completely Covered?
It is important to note that not everything is covered under a main homeowner’s policy.
The following perils are typically covered with a standard policy:
- Falling objects
While this list covers most events that could affect your home, there are some that aren’t covered by your standard homeowner’s insurance policy that you may want to consider adding.
Additional Optional Peril Coverages
Earthquakes and other earth movement are typically excluded from a standard policy. Earthquake insurance can help with costs of having your home returned to its pre-earthquake state and also may help with the cost of living somewhere else while your home is being repaired.
Homeowner’s insurance typically does not cover water damage from heavy rains or snow runoff invading your home. Flood insurance has you covered if you find yourself in the very unfortunate position of having your property and structure damaged by flooding.
It can help pay for repairs as well as additional living expenses if you need to stay elsewhere while repairs are taking place.
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Types of Homeowner’s Coverage
There are different types of homeowner’s policies. The policy you choose can have an impact on your annual premium amount – and a big impact on your ability to rebuild or replace after a claim.
Actual Cash Value
This policy covers the actual original cash value of the portions of your house that have been damaged. It will not likely not cover the entire cost of fixing damage to your home or replacing property.
Coverage that pays for the costs of rebuilding your home or replacing damaged property, a replacement cost policy pays up to the limit of your policy.
So, if you’re policy covers damages up to $250,000.00 and your home is entirely lost in a fire, the coverage will pay $250,000 toward rebuilding.
Extended Replacement Cost
The most comprehensive homeowner’s policy available, this coverage can pay for repairs up to your policy limit and beyond.
Depending on the replacement percentage you choose when selecting your policy, this coverage can cover an additional 25% – 200% of your policy amount for a claim that is covered.
This means that if your damages go beyond the limits of your policy, extended replacement cost can close the gap, helping to pick up the extra costs of fixing your home.
Your home is one of the biggest investments you will ever make. Make sure it’s protected should the unexpected occur. Take a moment to talk with a professional who can help guide you to a homeowner’s insurance policy that is right for you.