What Does a Common Home Insurance Cover?

Whether you are living on your property or renting it to someone else, home insurance is a must. It protects your home in case of some natural disasters and theft. Certainly, you do not want to wake up one day and find that your home and belongings are damaged. Instead of paying these expenses yourself, home insurance can help you cover some of the costs. So, in case you want to get home insurance but are still unsure whether it is the right choice, just keep reading to know what it covers.

Dwelling and Other Structures Coverage

All home insurance policies cover both your home and other structures on your property. Dwelling coverage refers to the insurance on your home structure itself, including floors, walls, plumbing, and heating. On the other hand, other structures' coverage is the insurance on constructions on your property like sheds and separate garages; however, this coverage constitutes only 10 percent of your dwelling coverage limit. Whenever your home gets damaged, you will have to pay a deductible, your share of the costs, and the insurance company can provide the rest. Keep in mind that not all hazards are covered. The perils that your policy has may include theft, fire, explosions, falling objects, cracks, sabotage, and volcanic eruptions. On the contrary, some perils, such as nuclear threats, government action, pets, and negligence are not covered. Some other issues like tree removal may depend on your specific policy and state. So, it is best to check with your insurance company first to know your rights.

Personal Property Safety

To add an extra layer of protection, home insurance also covers your personal belongings. For example, if you lose your items due to a fire or theft, your insurance company can replace the damaged items according to their value. The items covered include expensive devices—electronics like your tv, computers, etc. However, you should also take into consideration the limit of liability of certain belongings. For example, electronics also have a limit. So, you can buy gadget insurance for more protection. Also, insurance companies cannot pay more than $2000 to replace your jewelry. Yet, what is great about home insurance is that it can also cover your guests’ belongings provided that they have lost them while staying on your property. Additionally, you can buy more coverage for the expensive items that have a restricted limit to protect them even more.

Loss-of-Use Coverage

If you have to move out of your house while it is getting repaired, your policy can cover the additional expenses such cases entail. For example, if your home gets ravaged in a fire and you have to stay in a hotel for a couple of months while it gets reconstructed, the company will shoulder these expenses on your behalf. According to your policy, this coverage can be restricted to a certain period or last until you can get back to your home. Generally, this coverage constitutes 20 percent of your dwelling coverage limit. When this coverage ends, you must handle such costs yourself.

Personal Liability Protection

Unfortunately, accidents happen all the time. Nonetheless, what is worse is that your guests might get injured on your property. Home insurance eliminates this matter of concern through personal liability coverage. If a person who is not living with you sustains an injury due to an accident, a trip and fall incident, for example, your policy will cover the legal expenses you need in case they file a lawsuit against you. However, if you deliberately hurt a person on your property or they sustain an injury due to your negligence, the insurance company cannot cover the expenses. Furthermore, the injured party’s medical bills and further healthcare expenses can be covered by home insurance as well. The insurance can cover up to $5000 in the medical expenses department. To expand this limit, add personal umbrella insurance for further protection. Also, you do not have to pay a deductible for this type of coverage. Thus, you can rest assured that whatever happens on your property, you will not be blamed as long as it is an accident.

A safe home equals a happy family. To rest assured your property is secure, you should invest in home insurance. Home insurance functions as a safety net to cover the expenses of many types of damages that can occur on your property. Standard home insurance covers your dwelling and other structures, personal property, additional living expenses, and liability in case of accidents. However, it is always wise to check with your company to know the full extent of the coverage because it is subject to change.