Your home is more than just a roof over your head. It represents one of the most significant investments you will ever make. It deserves the protection that quality homeowners insurance can provide.
Still, not all homeowners insurance policies are the same. You will want to pay close attention to the coverage your policy may contain. Below, we’ve outlined a few basics of homeowners insurance, so take a closer look to learn more.
What Is Homeowners Insurance?
From time to time, homeowners may face unexpected and costly problems. Homeowners insurance can help them cover costs related to these challenges.
Although policies vary, a typical homeowners policy offers coverage for both personal liabilities and property damage that may unexpectedly occur at your home. By providing coverage, your policy can help lessen how much you have to pay out of pocket for these losses. Ask your agent to help you understand your coverage needs.
The Coverage Within Homeowners Insurance
Most homeowners policies will include several coverage components. These include:
- Dwelling coverage—Dwelling protection is one of the core types of protection provided by homeowners policies. It can cover the home in case of a covered peril (e.g., fires, vandalism, burst pipes). It may cover the home’s foundation, walls and roof, along with other features of the building. Coverage can help you repair the home’s structure and rebuild the house following a total loss.
- Other structures coverage—Structures not attached to your dwelling may have coverage under this portion of your policy. It insures structures such as detached garages, garden sheds, driveways, sidewalks, patios, fences and swimming pools.
- Personal property coverage—Homeowners insurance can also help cover the belongings you keep within your home. For example, if a fire damages your furniture or someone steals your electronics, this coverage may cover the costs of repairing or replacing these items. You may be able to buy extended coverage for items such as jewelry or furs, which may have values beyond the limits of your personal property coverage.
- Loss of use coverage—A covered loss, such as a house fire, may force you out of your home. During the time you cannot live in your home, loss of use coverage can help you cover costs over and above your ordinary living expenses.
- Liability coverage—Liability coverage applies if someone who does not live with you sustains an injury on your property. Suppose a visitor to your home trips and falls on your staircase. In this case, bodily injury liability coverage may apply. It may help you cover the injured person’s medical bills, as well as legal fees if you get sued, up to the limits of your policy. Homeowners policies may also offer coverage for property damage liabilities.