We’ve discussed in previous blog posts a few situations that might not be covered in your homeowners insurance, but it’s also helpful to know what is covered. Homeowners insurance is a package policy, which means it affects a lot of different things in your life, and it actually covers more than just damages to your home.
So, generally speaking, what’s covered and what isn’t?
Most policies will cover damages incurred in the event of a fire, windstorm, hail, lightning, or a theft or vandalism. Usually, disasters like earthquakes and floods are not covered, but there are additional coverage policies that you can purchase if you choose. It’s a good idea to talk to an insurance agent while you are in the process of selecting the right home insurance policy for your property, because they will be able to alert you to additional coverage options that may apply to you.
Homeowners policies differ a little based on the home, the person, and the insurance carrier, but most standard policies cover your family and your house in these four categories:
- Structural coverage – This part of your policy will pay to repair or rebuild your house, including damages done to your plumbing and electric, provided the damages were a result of a covered disaster. Most policies also cover surrounding buildings like garages and sheds, for about 10% of the insurance you have put toward the structure of the house.
- Living expenses in the event of a covered disaster – If you are forced to vacate your home as a result of a disaster that is covered by your policy, your homeowners insurance will most likely pay for your living expenses until you can return to your home. Keep in mind that this, like all coverage, has a limit. That limit tends to differ from company to company, so talk to your agent about what kind of coverage your policy provides, and how you can increase that if necessary.
- Protection of personal belongings – Your homeowners insurance policy will also cover any personal belongings that are stolen or damaged in a fire or some other covered incident. These belongings are covered up to a certain percentage of the insurance amount you have on your home, usually somewhere around 50% to 70%. If you have very valuable items like jewelry, furs, heirlooms, and art, and you’d like to ensure they are insured for their full value, it’s probably in your best interest to take out a separate policy for these.
- Liability expenses – This part of your policy protects you in the event that someone you don’t live with is injured on your property. The person who was injured can submit their medical bills directly to your insurance company, rather than file a liability claim against you. Again, this too has a limit that depends on your policy and your insurance carrier.
If you have any questions regarding your homeowners insurance policy, or if you’re looking to purchase insurance give one of our knowledgeable insurance agents a call. We would love to answer those questions at 616-949-9000, or you can submit a request for a free insurance quote online!
