Home insurance protects you from financial loss when your home or its contents are damaged. It may also protect you if you or a family member is held liable for damaging another person’s property or injuring them. If you buy a home, most mortgage lenders will require that you have homeowner’s insurance, but even if it’s not required, there are some very good reasons for paying the premiums to keep your home covered by a home insurance policy.
There are different types of home insurance policies, and they provide a wide range of coverage options. The most basic types of homeowner insurance simply pay to repair the damage caused by such things as fire, hail, theft, vandalism or windstorms. Many policies provide additional coverage, including liability coverage if someone outside your family is injured on your property. Most policies, however, do not cover damage from floods or earthquakes. Here are some of the benefits provided by most basic home insurance policies.
Dwelling Coverage
This coverage pays to repair or rebuild your home if it is damaged by a covered hazard. The coverage extends to all of the structural elements of your home: the building itself, the wiring, plumbing, heating and other systems.
Other Structures
If you have a detached garage, storage shed or other structures on your property, it’s wise to also include them in your homeowner’s policy.
Personal Property Coverage
Most home policies will also reimburse you for personal items in your home that are damaged or destroyed by a covered hazard. Most policies have limits on the amount of reimbursement you can claim for the contents of your home, as well as how much they will pay to reimburse you for any single item in your home. If you have expensive jewelry, cameras, computers or other items, talk to your insurance agent about separate coverage for those items.
Loss of Use Coverage
In addition to paying for replacement or rebuilding, your homeowner’s policy will usually pay any additional living and lodging expenses if you can’t live in your home while it is being repaired. The covered expenses may include hotel lodging or rent for an alternate residence while your home is uninhabitable, as well as other expenses required for you to manage away from home.
In addition, most home insurance companies offer a wide range of other protections, including medical expenses if a non-family member is injured on your premises and legal fees to defend you or a family member in certain legal disputes.
Learn more about home insurance from one of our insurance professionals and find out what type of coverage is best for you.
