Your home is your most valuable investment, so it only makes sense to protect that investment with insurance. It sounds simple but homeowners insurance can create more questions than answers. So, let’s break down the coverage. The standard homeowner’s policy is divided into two sections; property coverage and liability coverage. Let’s start by taking a closer look;
Section 1 property.
- Coverage A covers dwelling. It provides protection for your home and the structures attached.
- Coverage B- Other structures, covers the structures other than your home located on your property such as a detached garage or shed.
- Coverage C – Personal property covers the contents of your home such as furniture, appliances, clothing, and toys.
- Coverage D- Loss of Use, provides coverage for your additional living expenses when you have “lost” use of your home. For example, if you have to vacant your home due to damage from a covered loss such as a fire or tornado, this coverage will pay for the additional cost to the hotel or other temporary living expenses you would not normally have until the damage to your home can be repaired.
One important note about homeowners insurance… not all cause of loss are covered such as floods. Homeowner policies are designed to provide coverage for exposures that most homeowners will incur. This helps to keep the cost of insurance affordable. Not everyone lives in an area where flooding is a risk. If you do, you might be able to purchase a separate policy to provide coverage and your independent insurance agent can help with that.
Now let’s take a look at section 2- the homeowner’s policy liability coverage, section 2, includes two coverage: personal liability and medical payments to others.
- Personal liability provides coverage when you are legally liable for bodily injury or property damage to others. It also covers injury or damage to others caused by any relative living with you. Let’s say you’re having a cookout and one of your guests accidentally injured on your property. For example, they fall due to a broken step at your door and your guest could decide to sue you for the injuries received because of your negligence. That’s when your homeowner’s policy liability coverage would come into play. It will defend you against lawsuits and help pay for expenses associated with those lawsuits.
- Medical payments covers medical bills incurred by invited people who are injured on your property or as a result of your personal activities. Remember your injured cookout guest? Medical payments coverage would help cover the cast and stitches they’ve received due to their injuries.
Just like every home is different so is every insurance policy. The most important thing to remember is your policy should protect your needs. So, ask questions and learn more about what coverage you need. Contact us!