Understanding the Ins and Outs of a Homeowners Insurance
Homeowners insurance provides protection in case your home or its constituents gets damaged. It also offers protection if you or your family member are held legally liable for injuries to others or destruction to their property. Most mortgage lenders also demand this insurance. Most insurance policies that protect your home include some basic policy coverage, but there are also many types of optional coverages that you can choose to protect the things that you consider important to you.
What’s covered and what’s not
Most home insurance policies will cater for damages caused by perils such as windstorms, lightning, fire, hail, vandalism, or theft. There are, however, other homeowner’s policies that cater for additional dangers too. Typically, earthquakes and floods are excluded.
Types of Home Insurance Coverage
Liability Coverage- it protects you if you are sued, or a claim is made against you for damages after someone gets injured on your property.
Personal Property Coverage- helps protect possessions inside your home, including furniture, stereos, bicycles, and much more. If the belongings are damaged or stolen outside of your home, this type of insurance could also help to refund them.
Dwelling [home structure] – protects your home’s physical structure, like the roof and walls.
Other Structures- offers protection to other physical structures on your premises that are different from your home. These structures can be things like a stand-alone garage or a shed.
Guest medical protection- covers the cost of medical bills for an individual who is injured while on your property.
Though not mandatory, you can also purchase an optional coverage such as the reimbursed living expenses insurance which covers increased living costs such as hotel stays and food in case your home becomes inhabitable following a covered loss.
When choosing a coverage policy for your home, it is helpful to know the common claims that homeowners in your area have filed. This way, you will know the kinds of risks your home could be susceptible to and choose the right coverage.