Your property is one of your most valuable investments, which means that it is crucial to protect it with homeowners insurance. You may even already have insurance for your home, but how well do you really understand your policy? Coverage varies, so it can be a little confusing. Unfortunately, there isn’t a one-size-fits-all policy. With that in mind, let’s do a quick review of homeowners insurance coverage.
What is Homeowners Insurance Coverage?
The purpose of homeowners insurance is to protect your property from damage and theft. Although it isn’t required by law if you have a mortgage, the lender will require that you have homeowners insurance coverage for the full or fair value of the property to protect their investment.
Homeowners Insurance Coverage
Standard coverage typically includes things like damage due to fire, hurricanes, and vandalism. In the event of a disaster, the insurer will compensate you enough to rebuild your home. Poor home maintenance, earthquakes, or destruction from floods are not covered in a standard policy. But damage is covered when it happens in the home or attached structures, like the porch. Things in the house, such as clothing, appliances, and furniture are usually covered, too, but stand-alone structures on the property might require extra coverage.
If you own luxury items or expensive possessions, such as jewelry, fine art, or antiques, it’s best to get a rider for them or a separate policy.
Liability and Medical Payments
This coverage protects you from lawsuits if someone is injured on your property. It also includes your pets. For instance, if your dog bit a neighbor, your homeowners insurance coverage would pay the medical expenses.
If your house needs a huge renovation and you’re temporarily forced to leave home, don’t worry about the money you’d spend on hotels. Your insurance policy should reimburse you for it, as well as the restaurant meals other incidental costs during the renovation. This policy has a daily limit, though, so you can’t stay at the most expensive hotels.
Homeowners Insurance Coverage for You
Homeowners insurance is clearly a worthwhile investment. Protect your future by understanding your policy. You may just thank yourself later. If you’re interested in knowing more about the different types of coverage we offer, you can contact our office at (925) 447-1744. We look forward to helping you!