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What Does Homeowners Insurance Cover
4 Jul 2018

What Does Homeowners Insurance Cover?

As a responsible homeowner, you are prepared and willing to take the long-term investment of your home seriously. If you don’t have homeowners insurance by now, it might be time to consider getting some.

It is unfortunate that the cost of such insurance has risen over the past few years, on average by around 3% each year. You might think that means it wouldn’t be worth the investment, but you should think again.

Around one in fifteen homes that have insurance file a claim every year. Clearly, there is a reason to have such a policy in case you become one of those fifteen.

If you are ready to get a homeowners insurance policy, you might be asking, “What does homeowners insurance cover?”. The good news is that you have come to the right place by reading this article. Below are the detailed answers you are looking for.

What Does Homeowners Insurance Cover Other Than Your Peace of Mind?

The first thing you should know about homeowners insurance is that coverage policies vary according to many factors. First and foremost, your policy might look different depending on which state you live in. It’s a good idea to do plenty of research about your local area’s insurance requirements.

The next thing you should know is that some of the policy’s coverage will be up to you to decipher and determine. There are various levels of coverage you need to consider.

The most basic level of coverage is dwelling protection, which essentially covers any structural damage to your home due to severe weather. Note, though, that sometimes certain natural disasters do not get coverage if your home gets damaged. Unfortunately, floods and earthquakes are some of these natural disasters that often are not covered by most basic policies.

Further protection covers things like personal property, liability, and other structures on your property. Continue reading to learn what exactly each protection layer covers under homeowners insurance.

Dwelling Protection

As mentioned above, dwelling protection is the most basic coverage that every single homeowners insurance policy will cover. This protection coverage basically insures the actual structure of your home – not all of your property inside of it.

Attached structures to your home are also covered under this protection. These include things like a garage or an attached patio.

Sometimes, though, not everything about the structure of your home is covered. For example, if you live in and own a condo, the shared wall with your neighbor(s) may or may not be covered under this protection. That is why it is always important to read the fine print.

Personal Property Protection

As for all of your belongings within your actual home, personal property protection comes into play here. This coverage protects everything from a blender to your vehicle. The inventory of your belongings, though, is up to you to maintain and track.

Of course, you probably already have affordable car insurance as a responsible owner of a vehicle. Nevertheless, it is comforting to know that this layer of homeowners insurance might provide additional safety in the case of a disaster.

For this part of homeowners insurance, it is definitely a good idea to keep a detailed inventory of everything you would like to have replaced in the case of a terrible situation. That means for large electronics and similar appliances, you should keep a running list of types, models, and serial numbers. You never know when disaster is going to strike, so it is best to be as prepared as possible.

Liability Protection

What happens, though, when circumstances outside of your control injure someone else on your private property? For example, what happens if your dog bites and hurts a passerby without provocation? Or, what if a guest in your home trips and falls down the stairs only to land on a broken limb?

The good news is that liability protection can easily cover these kinds of accidents. There is simply no way to prevent some things in life like this, so you want to make sure any homeowners insurance policy you get has a thoroughly detailed liability protection.

Remember that there will always be ins and outs of any insurance policy that might be difficult for you to navigate. That is okay because it only means that the details may or not be to your advantage. You simply need to make sure you read every part of a policy before purchasing it.

Other Structures Protection

It has been mentioned that an attached garage or covered patio would be covered under dwelling protection. What about other structures that are not technically attached, though?

Well, many homeowners insurance policies offer something called other structures protection. This protection can take care of a storage shed or an unattached garage on your personal property.

In case damage happens to them, you don’t want to have to pay out-of-pocket to repair or replace these structures. Do your best to find the other structure protection that will cover every part of your property. If you do not have any other structures on your land, then you don’t have to worry about this protection at all, which might save you a buck or two.

Additional Living Expenses Protection

Sometimes we find that living in our home is not possible for a temporary period. That could be because you are getting serious home improvements done.

In these situations, it is convenient to have additional living expenses protection. This protection is commonly covered through up to 30% of your home’s total value. If you need to live in a hotel for a week while your home’s roof is getting repaired, this is the kind of protection you will wish you had.

Stay Informed on the Latest Trends in Insurance Coverage

At the end of the day, it is a long answer when one asks, “What does homeowners insurance cover?”.

Hopefully, you have a better idea of that answer after reading about the different protection possibilities above.

We know how important your peace of mind is when it comes to insurance. We encourage you to check out our article archives on insurance to stay updated on all of the latest trends in the industry. You deserve to stay informed.