The homeowner's insurance coverage
Let me start off by writing that homeowners insurance policies are individually written. Your could have got unique individuals or features that are not covered here
This is a general outline of things that a basic and general policy will help to secure for you. You have to look at the specific features of your own policy, or any policy you are thinking about buying, to be sure.
Property Insurance For Buildings and Structures - The foundation of your policy will probably cover the actual building you live in. This may also include other structures on your property like your fence or garage. If your home is damaged, you will be covered under this section of the policy.
Now keep in mind that this part of the policies will also include a maximum coverage amount. This amount is usually higher than the real value of your home because it is an amount that is calculated to include rebuilding costs.
You will probably also have a deductible which you must pay out-of-pocket before the insurance kicks in. For example, if a tree branch falls and breaks a window, it may cost $100 to replace. If your deductible is $500, you will have to pay that $100 our of your pocket.
Liability Insurance - In today's society, it is wise to be concerned about law suits. If a visitor claims that they were injured on your property, you may need to turn to the liability portion of your homeowners insurance property. It will be good to have an insurer on your side if you do get sued.
Home Contents or Personal Property - This is different from insuring the structure. Your TV, jewelry, and laptop would be covered by the personal property portion of your policy. When you get a policy, you may be able to choose between covering these items at replacement value vs. actual value. Most of us would rather choose replacement value. The type of, or storage area sale, worth of your TV SET may only be $25. But it would cost you hundreds of dollars to replace that TV.
Relocation - If your home must be repaired or rebuilt, it may be impossible for you to live in it for awhile. Imagine how much it would cost to find another place to live. That is why some relocation coverage can be a very valuable part of any policy! It can pay for a motel or apartment for you to live in while your home is being fixed.
What Homeowners Insurance Does Not Cover
As important as it is to know what homeowners insurance covers, it is also very important to understand what your policy will not cover!
Floods - Most regular homeowners insurance policies do not cover natural floods.Homeowners must purchase a flood insurance policy.
Damages Over The Limit - If you own $100,000 worth of personal property, but only have $10,000 of home contents insurance, you could be out of luck. You may not think your property is worth that much, but add up the replacement value of your TV sets, computers, jewelry, books, etc. You may find that your are under insured!
This is a general outline of things that a basic and general policy will help to secure for you. You have to look at the specific features of your own policy, or any policy you are thinking about buying, to be sure.
Property Insurance For Buildings and Structures - The foundation of your policy will probably cover the actual building you live in. This may also include other structures on your property like your fence or garage. If your home is damaged, you will be covered under this section of the policy.
Now keep in mind that this part of the policies will also include a maximum coverage amount. This amount is usually higher than the real value of your home because it is an amount that is calculated to include rebuilding costs.
You will probably also have a deductible which you must pay out-of-pocket before the insurance kicks in. For example, if a tree branch falls and breaks a window, it may cost $100 to replace. If your deductible is $500, you will have to pay that $100 our of your pocket.
Liability Insurance - In today's society, it is wise to be concerned about law suits. If a visitor claims that they were injured on your property, you may need to turn to the liability portion of your homeowners insurance property. It will be good to have an insurer on your side if you do get sued.
Home Contents or Personal Property - This is different from insuring the structure. Your TV, jewelry, and laptop would be covered by the personal property portion of your policy. When you get a policy, you may be able to choose between covering these items at replacement value vs. actual value. Most of us would rather choose replacement value. The type of, or storage area sale, worth of your TV SET may only be $25. But it would cost you hundreds of dollars to replace that TV.
Relocation - If your home must be repaired or rebuilt, it may be impossible for you to live in it for awhile. Imagine how much it would cost to find another place to live. That is why some relocation coverage can be a very valuable part of any policy! It can pay for a motel or apartment for you to live in while your home is being fixed.
What Homeowners Insurance Does Not Cover
As important as it is to know what homeowners insurance covers, it is also very important to understand what your policy will not cover!
Floods - Most regular homeowners insurance policies do not cover natural floods.Homeowners must purchase a flood insurance policy.
Damages Over The Limit - If you own $100,000 worth of personal property, but only have $10,000 of home contents insurance, you could be out of luck. You may not think your property is worth that much, but add up the replacement value of your TV sets, computers, jewelry, books, etc. You may find that your are under insured!
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