Homeowner’s insurance is something that most of us don’t spend a lot of time thinking about until we need it. And, sometimes we find out, after it’s too late, that our coverage is lacking. By having a good understanding of homeowner’s insurance, we can better prepare by choosing the best policy and ample coverage well in advance of disaster.
Here, we will discuss, in detail, the items that are usually covered on a standard homeowner’s insurance policy.
- The Structure of your Home
Repairs or rebuilding of your home is covered in case of fire, lightening, tornados, and hurricanes. Other disasters may be listed in your policy as well. Policies usually do not cover damages from floods and earthquakes. Smaller structures on your property such as detached garages and sheds are usually covered also. Trees and plants are even covered, although the coverage usually does not include wind damage. It is important that your policy includes enough coverage to replace your home in case of total loss.
- The Contents of your Home
Personal items in your home such as appliances, furniture, clothing, and other items are also covered in a standard policy. You can choose the amount of coverage you wish to have on your personal belongings. These items are covered by your homeowner’s insurance even when you are traveling with them. An inventory of your contents will help you decide the amount of coverage you need.
- Living Expenses
In case of damage to your home that requires temporary housing for you and your family, ALE (Additional Living Expenses) covers the expenses incurred while your home is being repaired or rebuilt.
Liability insurance protects against lawsuits of bodily injury and/or damage to property caused by family members, guests, or pets. For example, if you are visiting a neighbor, and you accidentally damage their property, you are covered by YOUR homeowner’s insurance. Or, if your neighbor falls and injures himself on your property, their medical expenses would be covered under your policy. You can choose the level of coverage you wish to carry on liability.
Spending a little extra time planning, while choosing your coverage, will be well worth the time spent, in case of emergency. Eliminating the possibility of getting caught off guard, will be one of the best gifts you can give yourself and your loved ones.