August 19, 2015
Do You Know What Your Home Insurance Policy Covers?
Home Insurance Coverage
While everyone knows that a homeowners insurance policy will provide coverage for many situations at your house, many people do not really know what that means. There are four main types of coverage that comes with a standard home insurance policy, including:
- Structure of your house – if your home is destroyed or damaged by hail, lightning, fire, hurricane, or other listed peril, your home insurance policy will cover the costs to repair or rebuild your house. Most standard homeowners insurance policies will also provide coverage for other structures on your property, such as sheds and garages.
- Personal belongings – all of your personal items that you keep inside your house, from clothes to sports equipment will be covered if they are stolen or destroyed by a covered peril. Typical home insurance companies will provide coverage for 50 to 70 percent of the total amount of insurance coverage that you have on the structure of your home. The personal property portion of your home insurance policy will also provide off-premises coverage, which means your assets are covered no matter where you are in the world.
- Liability – which will provide protection against any lawsuits that arise from property damage or bodily injury that you or your family members cause to others. Your liability coverage will cover any legal fees that you incur if you are sued for the incident, up to the limit of your policy.
- Additional living expenses – if you are not able to live in your house while it is being repaired after a covered peril, your home insurance policy will cover the extra costs that you incur, such as restaurant meals and hotel bills.