Homeowners’ insurance is a protective measure that will pay for damages to your property, cover your legal responsibility, and liability as well as any injuries and property damage to you, your family or others. The damage caused by household pets is often included in the coverage. A standard homeowners’ insurance policy provides 4 types of coverage that are considered essential.
Coverage for the structure of your home
This particular part of the policy will pay for any repairs if your home is damaged or destroyed by any of the disasters that are listed in your policy. Disasters such as fire, hail, hurricanes and lightning are commonly listed in these policies and it is very important to consider the weather in your area and its history of natural disasters when choosing coverage. In most cases, standard homeowners’ insurance policies cover structures such as garages, gazebos or tool sheds.
Coverage on your belongings
Personal items such as clothes, furniture and other belongings are covered by your homeowners’ policy from theft, fire and any other disaster listed in the policy. Most insurance companies offer about 50 – 70% of the amount for which the structure of your home is insured. It is recommended that you conduct a home inventory to make sure that the amount you receive is adequate to cover any possible losses.
Liability protection coverage
Any property damage or injuries that are caused by you or your family members will be covered by liability protection coverage. This coverage will also pay for any damage caused by your pets. This means that if your children or your pets damage a particularly expensive vase in your neighbor’s house, it will be covered by the liability protection coverage. However, this does not mean that any damages to your own properties will be covered. Aside for the cost of the damage, the liability portion will also pay the legal charges in any lawsuit up to the policy limits.
Additional living expenses
This portion of your policy will pay for any additional costs of living that you may have to face should have to live away from your home. If your home is destroyed or damaged from a disaster listed in your policy, the insurance company will pay for hotel bills, meals from restaurants as well as other expenses that are above your regular expenses. However, this coverage has limits and it is normal for some policies to have time limitations.
A standard homeowners’ insurance also covers any trees or plants in your garden. Generally, you will be offered about 5% of the insurance amount on the house all the way up to $500 for each item. The disasters include theft, vandalism, riot, explosions and even falling aircrafts, but do not include wind damage and disease.