Homeowners Insurance & What Does Home Insurance covers

We will be discussing how to ensure your home, What Home Insurance covers?, How Much is Homeowners”s Insurance? and the five best insurance companies in the state presently.

What Is Homeowners Insurance?

Homeowners insurance is a mix of coverage types that protect your investment in your home. It covers the dwelling (house), other structures such as fences, and personal belongings from accidents and problems, such as house fires and theft.

Homeowners insurance also provides liability coverage, which pays for property damage and injuries that members of your household cause to others. Liability coverage also pays for a legal defense and settlements if you are sued for an injury or property damage.

A standard home insurance policy includes additional living expenses (ALE) coverage, which pays for extra costs if you can’t live at home because of damage that’s covered by the policy. Extra expenses could include hotel lodging, restaurant bills and other services (such as pet boarding).

 Homeowners Insurance Companies Ratings

Do I Need Insurance As  A Tenants ?

You don’t even have to own your home to need insurance; many landlords require their tenants to maintain renter’s insurance coverage. But whether it’s required or not, it’s smart to have this kind of protection. We’ll walk you through the basics of homeowners insurance policies.

What Does Home Insurance Cover?

Home insurance covers your house, other structures on your property like barns and fences, and your belongings. It also provides liability protection and coverage for additional living expenses if you’re forced out of your home due to damage.

A standard home insurance policy contains these valuable coverage types.

Dwelling coverage

The dwelling section of a home insurance policy covers your house structure. The dwelling coverage amount should reflect the cost to rebuild the house based on the construction and labor costs in your area. Dwelling coverage is not based on the real estate market value of your home.

There’s related coverage for other structures such as a fence or unattached garage.

Personal property coverage

Personal property coverage pays to repair or replace your personal belongings if they are damaged or destroyed. This encompasses furniture, clothes, kitchenware, house decor such as curtains and everything you have packed away in boxes in your basement or attic.

The coverage amount for personal property is usually set between 50% to 70% of the dwelling coverage amount. For example, if your dwelling is insured for $250,000 and your contents coverage is set at 50%, you’ll have $125,000 in contents coverage. You can buy more personal property coverage if you need it.

Liability insurance

While it’s easy to focus on the material items like your house and belongings, homeowners insurance includes crucial coverage for liability.

What Does Home Insurance Not Cover?

A standard home insurance policy excludes several types of problems, such as:

  • Ordinance of law, such as a government requirement to demolish, repair or rebuild your home to meet local ordinances
  • Earth movement, including earthquakes, landslides and sinkholes
  • Water damage, including floods and water backup from sewers and drains
  • Power failure
  • Neglect, such as a failure to maintain heat
  • War
  • Nuclear hazard
  • Intentional loss
  • Government action, such as a seizure of property
  • Wear and tear
  • Smog, dry rot, rust or other corrosion
  • Discharge, migration, seepage, escape or release of pollutants
  • Smoke from agricultural or industrial operations
  • Mechanical breakdown or a latent defect that causes property damage
  • Shrinking, settling, expansion or bulging of bulkheads, pavement, footings, foundations, patios, walls, floors, roofs and ceilings
  • Vermin, rodents, birds or insects
  • Damage caused by an animal you own
  • Neglect, such as a failure to maintain heat

A standard home insurance policy excludes several types of problems, such as:

 Homeowners Insurance & What Does Home Insurance covers

But whether it’s required or not, it’s smart to have this kind of protection.

NOTE: 

For example, if your dwelling is insured for $250,000 and your contents coverage is set at 50%, you’ll have $125,000 in contents coverage

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By Trinh

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