The average consumer’s biggest investment will be their home. To protect your dwelling and property you need Homeowners Insurance. There are four important items covered in a Standard Policy.
The structure of your house pays to repair or rebuild your home if it is damaged or destroyed by fire, hurricane, hail, lightning or other disaster listed in your policy. It will not pay for damage caused by a flood, earthquake or routine wear and tear. When purchasing coverage for the structure of your home, it is important to buy enough to rebuild your home.
Your personal belongings include furniture, clothes, sports equipment and other personal items are covered if they are stolen or destroyed by fire, hurricane or other insured disaster. The best way to determine if this is enough coverage is to conduct a home inventory.
Off-premises coverage means that your belongings are covered anywhere in the world, unless you have decided against off-premises coverage.
Expensive items like jewelry, furs and silverware are covered, but there are usually dollar limits if they are stolen. To insure these items to their full value, purchase a special personal property endorsement or floater and insure the item for its appraised value. Coverage includes “accidental disappearance,” meaning coverage if you simply lose that item. And, there is no deductible.
Trees, plants and shrubs are also covered under standard homeowners insurance but they are not covered for damage by wind or disease.
Liability protection covers you against lawsuits for bodily injury or property damage that you or family members cause to other people. It also pays for damage caused by your pets. However, if they destroy your rug, you are not covered.
Your policy covers defending you in court and any court awards up to the limit of your policy. You are also covered not just in your home, but anywhere in the world.
Your policy also provides no-fault medical coverage. In the event a friend or neighbor is injured in your home. However, liability has a limit, check your policy or ask your agent to help.
Additional living expenses pays the costs of living away from home if you cannot live there due to damage from a fire, storm or other insured disaster. It covers hotel bills, meals and other expenses over and above your normal living expenditures incurred while your home is being rebuilt.
Keep in mind that your homeowner’s policy has limits. And, the amount of additional living expense coverage is separate from the amount available to rebuild or repair your home.
If you rent out part of your house, additional living expense coverage also reimburses you for the rent that you would have collected from your tenant if your home had not been destroyed.
Be sure you speak with your Insurance Professional if you need to increase your coverage or need feature explanation of your policy.