Homeowners Insurance: What’s Covered/What’s Not
Homeowners insurance is essential. It provides financial protection in the event that your home or its contents are damaged. It also provides protection if you or a family member are held legally responsible for the injuries to others or damage to their property. It’s also required by most lenders to secure a mortgage.
But even homeowners policies have their limits. For instance, floods and earthquakes are typically excluded.
So, what DO most basic homeowners policies provide? Here’s a good starting point:
Dwelling coverage. Pays to repair or rebuild your home – including electrical wiring, plumbing, and heating and air conditioning – if damaged by a covered cause of loss. It’s important to have enough dwelling coverage to cover the cost to rebuild.
Other structures coverage. Pays for damages to detached structures like garages, sheds, fences and cottages on your property.
Personal property coverage. Reimburses you for the personal items in your home that may be damaged or destroyed by a covered cause of loss, which could include your furniture, clothes, sporting goods and electronics.
Loss of use coverage. Pays your additional housing and living expenses if you must move out of your home temporarily while it’s being restored.
Liability insurance. Helps protect your assets and cover your defense costs in the event of a lawsuit because you or your family members are responsible for causing injuries or damage to other people or their property.
But is your homeowners policy enough? Think you still might have a few costly insurance gaps? If you have any questions, give us a call, send us an email, or drop by our office. After all, we don’t want to just sell you insurance. We want to help you make informed choices on one of the most important decisions of your life.
First Baldwin Insurance