Being a homeowner, you want your home to remain safe from any damage. For this, you need to buy a home insurance policy. Homeowner insurance policy provides you with financial protection and helps to pay for repairs or replace your belongings and home if damaged due to any perils.
This insurance policy also covers costs if you accidentally damage another person’s property or if someone is injured at your home.
Unaware of what homeowner’s insurance actually covers? If so, you are in the right place. This article will explain all the coverages provided by a home insurance policy.
Coverage for the Structure of your Home
Your homeowner’s policy pays to repair or build your home if it is damaged due to fire, hurricane, hail, lightning, or other disasters. Some insurance companies, such as Bear River Insurance, also cover other structures attached to the home, including garages or decks, against certain risks.
Some homeowner policies also cover other structures that are on your property but are separate from your home, like a detached garage, tool shed, or fence.
Coverage for your Personal Belongings
All your essential belongings, including furniture, tools, clothes, sports equipment, and other personal items, are damaged or stolen. This policy provides protection that helps repair or replace your belongings if they are damaged or destroyed by a covered risk.
Many insurance policies offer additional coverage that protects your stuff. For example, if you purchase the extended coverage for items such as watches, jewelry, and furs that are valuable to you.
Liability Protection
A typical home insurance policy provides liability coverage when someone is injured at your home, even if they do not live at your home. Suppose a visitor trips on your broken porch and is injured; then you may have to pay legal expenses or associated medical bills, regardless of whether you are found at fault or not.
However, if you purchase a homeowner’s insurance policy, it covers all these types of payments and helps reduce your stress.
Additional Living Expenses (ALE)
Additional living expenses refer to the extra costs incurred while living away from your home due to factors such as relocation and any potential disasters. It covers hotel bills, restaurant meals, and other fees; these expenses are beyond your routine living expenses while your home is being rebuilt.
Keep in mind that ALE in a homeowner’s insurance policy has limits, and some policies may also include time limits. These limits are separate from the amount available to repair your house. Even if you use your ALE, the insurance company still pays the full cost for rebuilding or repairing your home up to the policy limit.
What Homeowner’s Insurance Policy Does Not Cover?
With a homeowner’s insurance policy, it is essential to know what is not covered. Perils generally not covered by this policy if damage is caused by:
- Flood.
- Earthquake
- Termites
- Mold
- Earth movement
- Insects, rats, or mice
- Water damage caused by seepage or leaks
- Losses to a house vacant for 60 days or more
