What does Homeowners Insurance Cover? Homeowners Insurance is a type of insurance that protect you and your loved ones in case of disaster or damages done to your home or belongings. This insurance also covers you in certain situations and covers your personal items even if they get destroyed by natural disasters or stolen. Homeowners insurance is very important and it is not just a luxury. Not only does it protect your and the belongings in your home, but it also protects your loved ones.
Just so you know, the House insurance policies typically include different types of coverage. And I will mention all of them for you in this guide. Also, you can get insurance coverage based on what you really need and the risks. Whether it is damages caused by some natural disasters or theft, homeowners insurance policy got your back.
Also, you need to know that, you don’t need to be the owner of your home to purchase this insurance. Although it is not a required policy, it is very smart to have it cover you and your loved ones. Read on to know what is typically covered by a Homeowner insurance policy.
What does Homeowners Insurance Cover?
Most homeowners insurance policy covers these 4 types of coverage listed in this section. Check them out now;
This coverage is made to help repair or rebuild your home in case of unforeseen disasters like hail, fire, hurricanes, and lightning. It includes the main structures of your home but not detached structures of that same environment or premises. This dwelling coverage consists of your home and other important structures like a shed or garage. Your own type of dwelling coverage mainly depends on the policy you go for.
Liability Protection Coverage
Liability protection coverage helps to protect you from financial damages that are done to someone else or their properties if found legally responsible. Unless they are excluded from the policy, the coverage also covers damages caused by your family. Depending on your policy, it covers courts expenses and awards
Other Structure Coverage
Other Structure coverage is offered to help protect the detached structures on your property. Dethatched structures include detached barns, sheds, garages, fences, and gazebos.
Personal Property Coverage
This Coverage covers the value of your personal belongings. In other words, it pays the value of your damages, lost or stolen possession such as your collectibles, clothing, electronics, and furniture. Depending on your policy, expensive items can also be included such as jewelry, furs, and silverware. Even plants, trees, and shrubs can be covered in some policies. This coverage also includes items that are stored in the environment or premises.
Additional Living Expenses
Additional living expenses coverage pays for other costs of living until your home is repaired or rebuilt. It may include the cost of food in restaurants, hotel expenses, and other costs during that time. This type of coverage has limits and, in most cases, a time limit.
What does Homeowners Insurance not cover?
Keep in mind that, homeowners insurance won’t cover or pay for everything that goes wrong in your home. For instance, if you damage your home intentionally, the policy won’t cover it. Damages done from other causes excluded from the policies include;
- Sinkholes, Earthquakes and landslides
- war and Government action
- Power failure
- Neglect or wear &tear
- Nuclear hazard
Other things that are not covered by the Homeowners insurance policies include rodent or bird damages, rust rote, mode, insect, or termite damages.
Which Disaster is Covered by Homeowners Insurance?
In most policies, the PPC (personal property coverage) works in a different way than other coverage. Apart from covering your belongings, some policies cover the below disasters
- Discharge from home systems such as plumbing, air conditioning, and appliance
- Sudden tearing, bulging or cracking of stem system, air condition, hot water system, or fire protection system.
- Damages done by vehicles
- Fire or lightning
- Damage caused by vehicles
- Windstorms or hail
- Weight of sleet, snow, and ice
- damage from power surge
- Falling objects
These above-listed disasters are popularly called perils in homeowners insurance policies. Also, known as specific events that cause damage to your belongings and home
Does Homeowners Cover theft?
Yes, definitely homeowners policies help to cover your personal belonging if stolen, even if it happens in or outside your house. If the damage happened because of the coverage, the insurance company will cover the loss. If your home is also damaged from theft, the company will rebuild or repair your home under the dwelling coverage.
Meanwhile, you can extend the coverage to your loved ones or family members to protect their belongings. In addition, keep in mind that items like specialty bikes, fine arts, cash, and jewelry may not be covered by the insurance policy if stolen.