Whether you already own a property or are in the process of buying, you
need homeowners insurance. It protects your home from all kinds of
damages. Don’t forget: most lenders won’t issue a mortgage without proof
of coverage.
YOUR HOME
Sometimes referred to as ‘Dwelling Coverage’, this aspect of homeowners
insurance covers the physical structure of your home. This includes:
- Foundation
- Floors, Walls, and Ceilings
- Roof
- Mechanicals (Plumbing, Electrical, etc.)
- Any other structural component of your home
The insurance covers the cost of rebuilding your home if it is damaged or
destroyed by fires, hurricanes, or any other type of disaster listed in your
policy.
YOUR PERSONAL BELONGINGS
Homeowners insurance doesn’t just cover your home, it covers everything
inside too – like furniture, clothes, and appliances.
More expensive possessions like electronics, jewelry, and artwork are
typically covered up to a certain amount. If you own a lot of expensive items,
you can increase your levels of coverage for those items.
Your possessions are insured against events like theft, fire, and other
covered disasters.
OTHER STRUCTURES ON YOUR PROPERTY
Many homeowners have additional structures on their property besides
their main residence. These might include:
- A Garage
- A Guest House or Additional Dwelling Unit (ADU)
- A Shed or Outhouse
- Fences
Most homeowners insurance policies cover these items – check your policy
for specifics.
LIABILITY FOR INJURIES OR DAMAGES
Homeowners insurance also protects homeowners against liabilities for
injuries or damages suffered by others on their property.
One example: a neighbor trips and falls on a broken step, and sues you for
medical expenses and loss of earnings. Your homeowners insurance would
cover all associated costs.
Homeowners are typically covered for $100k – $500k in liabilities,
depending on the level of coverage in their policy. Experts suggest you
have at least $300k in coverage.
OTHER COVERAGE
Additional Living Expenses
Most policies cover living expenses if you have to move out of your home
temporarily due to a covered disaster. Your insurance will cover the cost of a
hotel room or temporary rental accommodation.
Personal Umbrella Coverage
PERSONAL UMBRELLA COVERAGE
This adds additional liability coverage to your homeowners policy. High net
worth individuals with a lot of assets, or people who own liability-increasing
assets like swimming pools, are good candidates for personal umbrella
coverage.
Flood & Earthquake Insurance
These are NOT covered by traditional homeowners insurance policies. If you
live in an area where either of these is a threat, you will need to purchase
additional insurance coverage.
Whether you’re purchasing a home or already own one, homeowners
insurance is an absolute necessity. It protects you, and your property,
against all kinds of threats. To learn more about homeowners insurance
for your home, get in touch today!