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What Does Your Home Insurance Coverage Do For You?
Article 3 of 8 in Homeowners Insurance Coverage Basics
Homeowner insurance coverage includes many things in, around, and outside the home. There are several sections of your homeowner insurance policy that provide coverage for different causes of loss. Before you purchase home insurance coverage, make sure you understand what it protects and get the best policy for your needs.
Your Home Insurance Coverage
Your homeowner's insurance policy has several sections for coverage, including:
- Home insurance coverage for your house- Provides coverage of your home and any attached structures. This would include anything inside that is affixed to the home-carpet, light fixtures, plumbing, electrical, etc. Note that there are some dwelling only policies that are limited just to the home. If you agree to a dwelling insurance policy, you need to be sure there is nothing on your property that you need insured.
- Home insurance coverage for other structures- Provides coverage for structures that are not attached to the home such as storage sheds, detached garages, fences, driveways, patios, gazebos, etc.
- Home insurance coverage for your personal property- Home contents insurance includes anything you own that is inside or outside your home such as your clothes, television sets, furniture, tools, lawnmowers, books, jewelry (to a certain limit), shoes, etc. Make sure you know the value of all of your personal property so you can be sure the home insurance coverage is sufficient!
- Home insurance coverage for loss of use- Also called Additional Living Expenses. This home insurance coverage will help you in the event you are not able to live in your home after it has been damaged. Your home insurance coverage will pay for you to live someplace else until the home is repaired.
- Homeowners liability insurance- This home insurance coverage pays for incidents which you are found liable or negligent in causing. It also can pay for an attorney in the event you are sued. Homeowners insurance personal liability coverage is one of the most important aspects of any policy, so make sure you understand what it is.
- Homeowners insurance coverage and medical payments- Medical payments coverage pays for injuries to other people that happen on your property. If a child falls from your swing set while playing at your home and breaks her arm, this coverage will help pay medical bills.
- Your Deductible- This is the deductible you will pay before any claim is paid. Normally homeowners insurance coverage deductible is anywhere from $500-$2000.
TIP:Every part of your home insurance coverage will have a limit set by your policy. It is very important that you know the limits of your home insurance coverage, and purchase additional protection if you are concerned the limits are too low!
If you have any questions about your home insurance policy, then you can ask an experienced professional any questions you might have.
Other Home Insurance Coverage Options
Some of the other common items that homeowners insurance coverage includes that most people may not be aware of are listed below. Policy limits could vary from insurance company to insurance company, so check the limits in your homeowners insurance policy.
- Grave Markers- The homeowners insurance coverage will pay for damaged or vandalized headstones or grave markers that belong to you at a grave site. Usually the policy limit is $1,000.
- Refrigerated Food Spoilage- Loss due to interruption of power. Policy limits can be anywhere from $200-$300
- Fire Department Service Charge- Some locales charge you in the event they have to come out for a fire. This policy limit is usually about $500.
- Credit Card , Forgery and Counterfeit Money- This coverage will pay for loss of checks , drafts or notes, or the unauthorized use of credit or debit cards issued and counterfeit. The policy limits is around $2,500.
- Watercraft- This would include water craft less than twenty six feet long with outboard engines of twenty five horse power or less.
- Business Property- If you have a home business, you can insure the business property. The policy limit is typically around $1,000
- Frozen Pipes - If your plumbing pipes freeze, your policy may cover the cost of the damage.
Perils and Home Insurance Coverage
Most insurance companies refer to perils as the particular risks that can cause loss or damage. In some home insurance policies, these are referred to as named perils- the types of occurrences that can cause loss or damage for which the insurance company will provide coverage. Named perils include fire, flood, hurricane, and any other disaster or accident that will damage the home. Many new home insurance policies are written on an all-risk basis, meaning that all perils are covered unless specifically excluded. One of the major differences between standard packaged home insurance policies are which perils are covered. Know what perils your home is protected from, and make any changes to the home insurance coverage that you need to before you agree to purchase it.
When you are ready to shop for a home insurance policy, make sure you get and compare several quotes to help make your decision. Find the right home insurance coverage and price to fit your needs. Get started today by clicking here and getting free quotes on home insurance policies.