A Guide To Home Insurance Coverage

Home insurance coverage will protect you and your family in the event that your house or the items within it are damaged or destroyed. It will also indemnify you in the event that you or a family member is found legally responsible when another person is injured while inside your house or outside on your property. However, not all home insurance policies are the same. It is important to make sure you know what your policy will cover and what is excluded.

Most home insurance policies will cover damage caused by fire, theft, vandalism, lightning, hail, and windstorms. However, damage from more severe sources such as tornadoes, earthquakes, and hurricanes will generally not be included in basic coverage plans. This can be problematic if you live in an area of the country where such natural disasters are common.

Although some types of damage are excluded, most standard home insurance policies include dwelling coverage, which can help you rebuild your house in the event of a disaster included in your plan. This will include repairing structural damage, replacing electrical wiring, fixing your heating and cooling system, and correcting any issues with your plumbing. You will need to be sure to buy enough coverage to cover the entire cost to rebuild, because if you purchase inadequate coverage, you may have to pay for some costs out of your own pocket.

In addition to dwelling coverage, most policies provide coverage for damage to structures that are detached from your house but on your property, such as garages, sheds, and guest cottages. Once again, you will need to be sure you purchase adequate coverage to cover the types of damage you may be at risk for the most.

Home insurance policies will also typically pay for damage to your personal property and items inside your house, as long as the damage is caused by an event that is within your coverage plan. Covered items can include clothing, books, furniture, electronics, and appliances. Whether or not your policy will pay you the value of the items themselves or replace them with the newest models can vary, so you will want to talk to your agent to figure out the specifics of your personal property coverage.

Loss of use coverage is also included in most policies. This type of coverage will protect you in the event that you are unable to live inside your home while it is being rebuilt or repaired, and is helpful if your house sustains severe damage. Loss of use coverage will pay for your temporary housing and additional living expenses if you’re forced to temporarily relocate.