Homeowner's insurance is an important piece of the home ownership puzzle. Because almost all mortgage lenders require proof of insurance, having a policy is more of a necessity than an option. However, many potential homeowners aren't clear about what a homeowner's insurance policy covers. While each policy is customizable and has varying details depending on the insurer, there are a few basic commonalities to remember:
Damage to the Interior or Exterior of the House
A homeowner's insurance policy will compensate you financially for damage to your house. Damage from fire, lightning, hurricanes, vandalism and other disasters are typically included in a basic homeowner's insurance policy. However, they usually don't include flood damage, earthquakes or damage from poor home maintenance. These other situations require additional customization or even separate policies depending on where you live.
The personal contents of your home are also covered by homeowner's insurance if lost in a disaster. While this can certainly help recoup losses from damaged appliances, clothing, furniture and other belongings, there's usually a dollar limit on how much the insurer will cover.
Personal Liability for Damage or Injuries
Personal liability coverage helps protect you from lawsuits filed by other people. It covers everyone in the household, including your pets. This helps you avoid paying the bill for accidents suffered on your property in case the other party decides to sue. This part of your policy usually comes with a cap you can increase by paying a higher premium.
Temporary Housing in Case of Rebuilding or Repair
Part of your homeowner's insurance policy includes "additional living expenses" which can pay for a hotel or house rental if your home needs to be repaired or rebuilt. This part of the coverage will reimburse you for rent, hotel rooms, restaurant meals and other costs you might incur while waiting for your home to return to a habitable state. Additional living expenses covered by insurance have a daily limit you can increase by paying more for your coverage.
As with any type of insurance, homeowner's insurance is different from one policy and provider to the next. However, keep these basic things in mind as a place to start when looking deeper into your options.
About the Author
Tracey Lizza
TRACEY LIZZA - Buying or selling a home is more than just a transaction: it’s a life-changing experience. Tracey is dedicated to providing exceptional, personalized service with total discretion for all of her clients. She takes great pride in the relationships she builds and always works relentlessly on the client’s behalf to help them achieve their real estate goals. Tracey places a high value on responsiveness and availability. She works with her clients every step of the way whether they are buying, renting or selling. A career as a real estate professional has been a perfect fit for Tracey. She has had a varied background in the marketing communications field including having worked in the international fashion industry as a buyer for over a decade. Combined with a personal selection of residential and commercial properties, Tracey brings her expertise along with firsthand experience. Tracey and her family enjoy the Shoreline lifestyle of Southeastern Connecticut and have garnered great pleasure volunteering and being active in her community and children’s schools. Tracey interests include gardening, fishing and boating.
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CAROL GESSNER - As a full-time Realtor I have the knowledge you need to get your home sold or find a new one. I am highly dedicated to bringing you customer service that exceeds your expectations. You can expect nothing less than superior professionalism and integrity from me. I have lived in southeastern Connecticut for 35 years. I grew up here. I have a connection to this community and the people who call it home. When I'm not helping my clients, I enjoy gardening, cooking and traveling. My true passions in life are my husband James, and our kids Nicholas and Nola.
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