Home insurance is a type of insurance that provides an individual with financial assistance in the event something happens to his or her home. It helps to pay the cost of repairs or replacement of your home or belongings from certain damages from fire, accidents or theft. In addition, some insurance coverage may also cover the costs of some situations such as if a visitor unfortunately got injured at your home.
A typical home insurance covers damages caused by fire, lightning strikes, windstorms and hail. But other natural disasters such as earthquakes and floods may not be included. Fortunately, you have the option to purchase additional coverage to protect your property. You can even purchase a separate insurance policy if you prefer to help financially protect your property and other assets as deemed necessary.
What Does a Home Insurance Cover?
Dwelling protection is one of the most basic coverages found in a homeowner’s insurance policy. It covers the structure of the home to which you live, as well as other structures attached to it – examples are your garage or a deck against certain risks.
There are perils that your insurance policy may cover. Although the perils listed under your insurance policy may vary, the risks listed below are actually some of the most common mishaps that are usually covered by any home insurance.
- Fire and smoke
- Lightning strikes
- Windstorms and hall
- Falling objects
- Water Damage
- Snow damage
Other Structures Protection
Your insurance may also cover other structures that are on your property. Examples include a property that is separate from your home, like a detached garage, tool shed or fence, a gazebo, and an in-ground swimming pool.
Usually, the policy will help cover some of the repair or replacement necessary to fix these structures.
Personal Property Protection
As the name suggests, personal property refers to your personal belongings you keep with inside your home. These items include furniture, electronics, clothing, and jewelry among others. Typically, your insurance policy covers personal property whether you own the house or is renting an apartment. In case your insured belongings are damaged or destroyed by a covered loss, such as theft or fire, the insurance should be able to provide financial protection.
There are two types of personal property coverage: first is reimbursement for the cost of an insured item, secondly is the actual payment equivalent to the value of the item. That is why it is important that you should understand the coverage of personal property insurance and the different limits it has.
Generally, a homeowner’s insurance policy offers liability coverage. This means it protects you when someone not living with you is injured while in the vicinity of your property. Your liability coverage will help in paying the legal expenses along with the visitor’s medical bills.
A typical home insurance should include all the policies listed above. But remember these policies are subject to a limit. Hence read all the fine print and ask a lot of questions.