A standard homeowners insurance policy insures the home itself and the things you keep in it. It is typically a package policy, which means it covers both damage to your property and your liability or legal responsibility for any injuries and property damage you or members of your family cause to other people but what exactly is the protection that it offers? In this two part series, let’s look first at what your policy protects you and your family from.
Part I: Property Protection
Dwelling: This offers protection as a result of damage to the structure of your home, including fixtures, plumbing and heating, due to a covered loss like fire or hail storm damage. It does not cover the normal wear and tear of your home or maintenance-related problems. You will need enough coverage for the cost of rebuilding or repairing your home, less the cost of the land.
Other structures: This includes coverage for detached structures, such as a garage, garden shed and fixtures attached to land such as a driveway, sidewalks, patio, fence and swimming pool.
Personal property: This covers the contents and personal items in your home such as furniture, clothing and sporting goods and also extends to your personal belongings anywhere in the world. Be sure to insure your personal property for its replacement cost value so that you can replace yesterday’s purchases at today’s prices.
Loss of use: In the event that a covered loss forces you from your home, such as the occurrence of a fire, the loss of use coverage provides a safety net for additional expenses over and above your normal living expenses while you are unable to live in your home, up to the policy limit.
Next week, we’ll review Liabilities to others and additional considerations that you need to take into account when purchasing Homeowners insurance. For more information about your policy or to get a free policy review, call any of our 8 local offices
