do you really need the extra insurance?

What Does Your Homeowners Insurance Cover?

by Rick Mcguinness

Your home is one of the most valuable assets, and you must protect it at all costs. It doesn't make sense to own an expensive house if you can't have it insured against damage, accidents, or theft. Accidents and burglaries often happen, but you'll have nothing to worry about if you have homeowners insurance.

A home insurance policy should give you peace of mind and cover any unprecedented damage in your house. But what exactly does this insurance cover? Will you be compensated for all kinds of damage in your home? Are there any exceptions? You're about to find out.

What's Covered?

There are different types of homeowners insurance policies, and each has a unique package. All in all, most policies provide the following coverage types.

Dwelling Coverage

Dwelling coverage covers the cost of rebuilding or repairing your house if it gets damaged by any disaster listed in your policy. The insurance company will compensate you for everything, including roofing, cabinetry, plumbing, floors, walls, water heaters, deck, and any other feature built into your home.

Personal Property Protection

Homeowners insurance policies don't just help cover house damage. They also cover personal belongings in your home as long as they're destroyed or damaged by a covered risk. You can opt to purchase extended coverage to protect expensive belongings such as watches, furs, firearms, and jewelry. Such items have limits of liability, which is why you need more comprehensive coverage.

Loss of Use Coverage

This policy provision covers extra expenses you might incur when living outside your house after damage has occurred. When your home gets destroyed, you'll have to live somewhere else until it's repaired or rebuilt. The insurance may cover any expenses you're incurring, be it rent, gasoline, or costs of meals.

Personal Liability Coverage

This provision takes care of any legal or medical expenses you might incur if a visitor gets injured in your home. If you also damage your neighbor's property accidentally, the liability protection may cover the damages. 

Other Structures Coverage

This is the part of the policy that covers structures that aren't attached to your home. It can include the fence, shed, garage, or guest house.

What's Not Covered?

Homeowners insurance typically covers losses and damage caused by most disasters, including hurricanes, fires, and windstorms. Unfortunately, most policies don't cover earthquake damage and water damage caused by sewer backups or floods. 

Additionally, the insurance company won't cover any damage caused by pests, neglect, or wear and tear. You'll have to foot the bill by yourself.

If you need homeowners insurance, reach out to a company like The Lofrumento Agency, Inc. today.