What is homeowner’s insurance?
Homeowner’s insurance is an important part of the home buying process, and it offers a range of coverages to help protect your home. A typical policy covers damages to your belongings and other structures physically located on your property.
The typical homeowner’s insurance policy includes:
- Dwelling Protection: This form of coverage covers your home and attached structures, such as a deck or garage.
- Personal Property Protection: This coverage can help you pay to replace belongings that are stolen or damaged by a covered loss.
- Other Structures Protection: This can help you to repair or replace structures on your property that are not attached to your home. This can include objects like fences, detached garages, or sheds.
- Family Liability Protection: Family liability protection can help if someone is injured on your property and you are found to be legally responsible for damages.
- Additional Living Expenses: This coverage can help pay for temporarily increased living costs. These costs can be things such as hotel bills if you are unable to stay in your home after a covered loss.
In addition to these, many insurers offer optional coverages that can help you further with additional things that you own. If you own a lot of luxury items, such as jewelry, watches, or furs, consider purchasing extended coverage that covers values above your personal property limits.
What damages does homeowner’s insurance typically cover?
- Fire and smoke
- Damage from lightning
- Damage from windstorms
- Hail damage
- Damage as a result of explosions
- Damage from the weight of snow, sleet, or ice
- Damage caused by falling objects
What’s not covered?
- Movement of the earth. This means that earthquakes, sinkholes, and mudflow are not covered in a typical homeowner’s insurance plan.
- Mold. If a pipe burst and you clean up the water, it’s possible that the water also traveled in the walls or under the flooring. As it sits, it forms mold.
- As previously before, insurance plans don’t cover luxury items, such as high-priced jewelry or art collections.
- Identity theft
How much does homeowner’s insurance cost?
The cost of homeowner’s insurance varies depending on a variety of factors. These factors can include replacement costs, condition, and location of your home, among others. Your credit score and past claims may also play into the cost of your insurance.
Whether you purchase a basic plan or pay for additional coverages, it’s never wise to go without homeowner’s insurance coverage.