My name is Eric Bowman, and if you have questions about insurance, this is the blog you need to read. I was always confused when I had to purchase insurance. I would either end up paying for insurance I didn't need or I wouldn't buy the right policy. I finally decided that I was going to learn all I could about insurance policies so that I would understand exactly what I was buying. Now, I am completely satisfied with my insurance and the coverage is just what I need. I realized that there are others who are probably just as confused as I was, so I am writing this blog to help others get the best insurance for their needs and budget. I hope that my blog gives you the information you need to make the right choices when purchasing insurance.
Homeowners insurance gives protection from damages to the house, contents, and personal liability. However, homeowners insurance is a bundle of coverage for varying situations. Knowing the different coverage can help you plan for your insurance needs. So, what does homeowners insurance protect against?
Homeowners insurance primarily covers damages to your home building and structures. There are two categories of coverage levels for building. The first grouping includes coverage for the physical structures of your home, such as the roof, floor, walls, fixtures, and appliances. Then, there is a category for outlying structures, such as sheds, fences, swimming pools, and the garage.
Generally, the insurance company pays for building damages resulting from covered perils. The calamities may include snow, hail, fire, and lightning, which may cause partial or complete damages. In such a case, the insurer either pays a replacement value or the actual value of the damaged property. However, not all calamities get included in standard homeowners insurance policies. For instance, the policyholder must take a separate cover for building damages resulting from flood, earthquake, or mold. Thus, check the perils and structures included and excluded in the policy.
The content damage component provides coverage for personal property in the house. Essentially, personal property includes any item you would carry when moving out of the home. Typically, you can incur a substantial financial loss of property through an accident like a fire and water leakage. You can also lose property through theft and burglary. Therefore, you should get coverage for personal items such as furniture, electronics, sporting gear, clothes, etc. There are limitations on how much you can receive when you lose expensive items like jewelry. Consequently, a homeowner should get an extra endorsement to extend the coverage amount for the costly property.
After an insured incident like fire, you may have to move out of your home. Such relocation is necessary during renovations and ongoing calamities like floods. Homeowners insurance provides additional living expense coverage to cope with the inconvenience. For instance, your insurer will meet the cost of rent or accommodation at a hotel. More so, the coverage takes care of your meals expenses. However, the policy will specify the duration for the benefit and the amount you receive based on the pre-existing living status.
Personal Liability Damages
Homeowners insurance offers coverage for personal liability involving bodily injury and property damage. Typically, you and your family can get sued for injuries and property damage to a third party. For instance, a visitor can suffer a dog bite at your residence, or your child may break the neighbor's window. In such incidences, the coverage would meet the legal costs and medical payments. However, personal liability coverage does not include intentional acts.
Are you ready to get your homeowner's policy? Even if you are a policyholder, review your coverage and confirm you have adequate insurance.