What does homeowners insurance cover?
Homeowners insurance is a type of coverage that protects you
financially in the event of an accident, disaster, or theft involving
your home. A standard homeowners insurance policy will include four
types of coverage: structure, personal belongings, additional living
expenses, and liability.
Coverage for the structures
Homeowners insurance pays to repair or rebuild your home in the
event of the unexpected. If your home is destroyed or damaged by an
insured disaster such as fire, lightning, hail, tornado, hurricane,
or other disaster listed on your policy, your homeowners insurance
would be there to help cover the cost. You should note that standard
homeowners insurance policies do not pay for damage caused by flood
or earthquake and you will need separate coverage for those
disasters. When shopping for a policy, you want to be sure to
purchase enough coverage to rebuild your home in the event that it
Coverage for your belongings
Personal items like furniture, clothing, shoes, dishes, sports
equipment, and other items would be covered in the event that they
were stolen or destroyed during an insured disaster. This type of
coverage also includes items stored off-premises and may include
some coverage for unauthorized use of your credit cards. To be sure
you have enough coverage for your belongings, you should conduct a
home inventory before speaking with your Insurance Agent.
Additional living expenses
In the event that you are unable to live in your home due to damage
from an insured event, additional living expenses (ALE) would help
cover the cost of hotels, food, and other expenses that exceed your
normal living expenses while your home is being repaired or rebuilt.
ALE does have limits and may include a time limitation- it is a good
idea to keep a copy of your policy documents on hand and speak to
your Insurance Agent if you have any questions about your coverage.
Liability is an important type of coverage to have because it
covers you against lawsuits for property damage or bodily injury
caused by you or your family members. This part of your coverage
will pay for the cost to defend you in court and any court awards-
up to your policy limits. Your policy will also include no-fault
medical coverage which means that if a neighbor or guest is injured
while visiting your home, they can submit medical bills to your
insurance provider without filing a liability claim against you.
Having homeowners insurance is an important part of owning your own
home and we're here to help ease your mind. If you have questions or
would like a no-obligation quote for your home, visit your local Acceptance Insurance Agent today.