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Homeowners insurance protects property owners from undue financial hardship that can arise from a wide variety of covered events. Coverage is available for incidents both on and off of the insured property and can help pay for loss or injury to structures, belongings, and even people. While no homeowner is legally required to hold such a policy, home lenders do generally require coverage at least equal to the amount owed on the mortgage as a condition of their loan.
Policy specifics differ by insurance carrier and coverage amount purchased, but most options on the market today offer several key protections. Homeowners should familiarize themselves both with the kinds of coverage available, as well as the coverage and deductible specifics of their own policy.
Dwelling coverage protects you and your family from the financial burden of repairing the structure of your home after a covered event. Garages, decks, and patios can also be included in this coverage type. This is only the case, however, if these components are physically attached to the main home building. Coverage A provides the means to repair or replace affected areas of the residence and adjoining structures after damage or loss.
If your garage is not attached to the residence itself, you will want to make sure your homeowners policy includes this coverage type. This is also true for properties with gazebos, fences, or outbuildings. Coverage B is similar to Coverage A in that it only provides financial protection for damage or loss involving the structure itself, not its contents.
Personal property coverage is necessary to ensure your belongings will be repaired or replaced in the event of a covered loss. This protection extends to your personal effects even if you are not at home when the damage or loss takes place. Depending on the specifics of your policy, it is also possible for this coverage to extend to personal property being stored somewhere other than within the home itself, like a storage unit. Pet insurance can also be categorized under this coverage type, in some cases.
This coverage provides financial support for additional living expenses incurred when your home is not inhabitable as a result of a covered event. Loss of use claim payout amounts and eligible expenses are dependent upon your unique policy and how much is required to reasonably continue the standard of living you maintained when your home could be occupied. Some policies even take into consideration the monthly difference in fuel cost if your commute to work is significantly increased.
You can be held legally responsible as a homeowner for injuries that occur on your property. If you do have litigation brought against you, personal liability coverage handles legal fees or settlement payments up to a predetermined amount. For homeowners with pools, ponds, or pets, this coverage is often a worthwhile investment. Coverage E can also be used to pay for accidental damage to someone else’s property that was caused by a member of your household.
Coverage F can help pay for medical expenses incurred by a guest on your property who has sustained a minor injury. This component of your insurance policy is not dependent on whether you could legally be held at fault for the injury, and can actually help deter the injured party from pursuing a lawsuit to cover the cost of medical attention associated with the accident. It does not cover less tangible costs like general pain and suffering and cannot be used to pay for care for a member of your household.
Even though the coverage is not required in all cases, homeowners insurance is an important asset to safeguard your home, belongings, and financial future. We know that navigating the ins and outs of complex coverage like this can be a daunting task, and our knowledgeable team of risk advisors is here to help! Reach out today for a free quote on a policy or send us a message with any other questions you may have.
