Key Takeaways:
- Before you get a homeowners insurance policy, make sure to read the fine print as policies differ and often cover certain necessities.
- There’s a chance that other insurance policies and your homeowner’s insurance will overlap.
- Before coverage for the structure of your home and its contents begins, all policies have deductibles.
- Damage or devastation brought on by fire, vandalism, and specific natural calamities are typically covered. In the event that someone is hurt on your land, you will also be liable.
- Certain disasters, such as earthquakes or flooding, usually require specialised insurance and are not covered by standard homeowners’ policy.
Generally speaking, homeowners’ insurance covers a wide range of potential damages. Both your real house and any other buildings on the land, such as a driveway, garage, fence, or shed, should be covered. However, homeowners’ insurance usually does not cover operating a company out of a separate facility on your property. Your policy usually includes coverage for personal property as well. Contents insurance is another term for the specific protection it provides. Certain high-value goods, including jewellery or artwork, may only have limited coverage; extra coverage is frequently obtained expressly for these kinds of valuables. Thus, when looking for a policy, don’t forget to inquire with your representative about the necessity of obtaining additional coverage to protect your possessions.
Car coverage:
- The majority of homeowners insurance policies cover your personal belongings and any independent structures on your land.
- However, what would happen if your automobile was broken into while it was in your garage or driveway? This is the point where it can get a bit difficult to distinguish between your house and auto insurance plans.
- Although damage to the car itself is not covered by homeowners’ insurance, many plans do offer limited coverage for personal belongings taken from the vehicle.
- However, some of the more extensive auto insurance plans can also pay for this.
- The coverage provided by your policy may also be restricted by insurance providers if the stolen goods were bought specifically to be used in the car.
Fire coverage:
- One of the most frequent reasons for home damage is house fires, and practically all homeowner’s insurance policies offer protection against them for buildings and personal property.
- Most conventional fire insurance policies also pay for additional living expenses including lodging, meals, and restaurant bills in the event that a fire totally destroys a home.
Flood coverage:
- Homeowners insurance typically covers flooding brought on by internal issues, such as a leaking pipe or an overflowing toilet.
- On the other hand, natural disasters like earthquakes can also cause flooding. Generally, basic policies do not cover causes that are man-made (burst dams, sewer backups) or natural (rising rivers, flash floods).
- In particular, if you reside in an area that frequently floods, you might inquire with your insurance provider about enhancing your coverage or—more likely—purchasing separate flood insurance. If you need a mortgage, you might even be forced to.
Vandalism coverage:
- Unless it is expressly excluded, vandalism is often covered under an all-risks or all-perils policy. After a predetermined amount of time, vacant homes are not covered by vandalism insurance. Only unoccupied homes are.
- A residence that still has the policy owner’s personal belongings in it even when the owner is not there is considered vacant.
- A vacant house is unoccupied and devoid of the personal belongings of the owner. This would happen, for instance, if you were selling your house and moving out, bringing everything you owned.
- Your policy’s vandalism coverage would expire after a predetermined amount of time.
Personal injury:
- The majority of homeowners insurance policies cover injuries sustained on your property for which you are responsible.
- This might be someone tripping over a patch of ice on your front walkway or someone falling from your porch due to a damaged step.
- Since this coverage is typically only worth a set amount of money, you should be ascertaining the precise scope of your coverage is vital.
- If you believe you need more liability coverage, umbrella insurance can offer it.
What does this mean for you?
The fine print in your insurance policy might not seem like very interesting reading, but it’s better to take the time to learn exactly what it covers—before you find yourself in a sticky situation and find out you’re not covered for that specific loss or liability. When it comes time to actually rely on your homeowner’s insurance coverage, it may be very beneficial to have done your study before buying a policy.