Coverage of Standard Homeowners Insurance
Home insurance typically has four types of coverage. This includes coverage for your home, coverage for your possessions, coverage for your liability, and coverage for other living expenses.
There are several terms as to when and where your homeowner insurance coverage applies. Your insurer would only cover losses and damages that are listed in your policy. Generally, this policy protects your home and belongings from general mishaps like storms, fire, wind, hail, and sometimes earthquakes and flood.
- Coverage for Your Home
This policy takes care of the physical damage on the home. It could also be as a result of fire, lightning, or other disasters incorporated in your policy. The parts of your home that are not visible (foundation) are covered as well. Additionally, the policy also covers detached structures like garages, sheds, and gazebos.
- Coverage for Your Possessions
The home owners insurance policy covers Furniture, clothing, household appliances and equipment, and other personal belongings. If these properties are affected by natural disasters, fire or theft, the policy is triggered.
These possessions do not have to be on the home premises. The policy also covers the belongings of those that reside on the holder’s property. Trees and surrounding plants are also covered except when affected by wind and diseases.
Doing a home inventory and documenting the possessions owned is vital to get the most out of your insurance policy. When a loss occurs, most people cannot recall what they have lost, so an inventory comes in handy.
This inventory should have pictures or videos, any receipts, and proof of purchase of the items attached to it. Your insurance company should also be well aware of exceptionally valued items such as jewelry or artwork. The inventory should be backed up somewhere other than the home. It could be stored digitally or online.
- Coverage for Your Liability
Coverage for liability protects the holder, their family members, and pets from lawsuits for bodily injury or damage on the property they incur. It pays the court costs for defending you and any awards you are required to pay. This liability coverage is applicable wherever the policyholder and their family members are in the world.
Also, home insurance providesno-fault coverage for medical bills. This means, if a friend or neighbor is sick or injured in your home, your insurance company covers their medical bills.
- Coverage for Other Living Expenses
In the event of a disaster or any other incidence that damages your home to the point that makes it unlivable, this type of insurance policy covers the cost of staying elsewhere. It covers hotel bills, restaurant foods, and other expenses incurred while your home is being reconstructed.
However, these living expenses have different terms that vary from one company to another. There is usually a time limitation, but the company will still pay the entire costs for rebuilding or repairing your home—until it reaches the policy limit.
Furthermore, if the tenant is unable to live in a part of your house you rented out due to any peril listed in your policy, the insurance company pays you the rent that you would have received from the tenant.