Homeowners insurance covers both damages to your property and liability, even if it is done by your household pet. There are certain exceptions, such as natural disasters. and it will not cover flooding, earthquakes, or poor maintenance. If you need flood insurance in your area, you will need to go to the National Flood Insurance Program. This also rings true for earthquake coverage which also needs to be a separate policy.
There are four essential types of coverage found in a standard homeowners insurance policy. The first is the coverage for the structure of the home which includes repairing or rebuilding a home due to damage from a fire, hurricane, hail, lightning or any other reason that is listed in your policy. Second is the coverage for personal belongings including furniture, clothes, sports equipment and any other personal items listed that are destroyed by a natural disaster listed in the policy or stolen. Third is liability protection which will cover lawsuits for property damage or bodily injury that is caused by the policyholder or anyone who lives under the same roof as the policyholder to another person (it also includes pets). The fourth coverage is additional living expenses which include expenses that occur away from the house if the house is damaged and not livable.
Homeowners’ Insurance policies can differ from state to state and different companies but they are fairly standard all over the United States. There are sixteen disasters that are standard and are listed in your policy that are covered. The levels of coverage can be chosen as well. There are three coverage options which include actual cash value, replacement cost, and guaranteed/extended replacement cost.
If you are a new homeowner and are unsure how to go about getting homeowners insurance, your Realtor can help you find an insurance rep that can help you along the way. Even when depending on a professional, you still need to know the ins and outs of homeowners insurance.
