Homeowner Insurance
Posted: 13 July, 2023
Homeowner insurance covers damages to the structure of your home, personal property, and other assets in your home. Homeowner insurance isn’t mandated, unlike car insurance. However, if you are financing your home, the bank do require it as a condition of your mortgage to carry insurance. Homeowner insurance can help you protect yourself from enormous financial loss. Most homeowner insurance policies are for 12 months and renew annually.
What is covered under my homeowner insurance policy?
A basic homeowner insurance policy comes with six main coverages such as dwelling, other structures, personal property, loss of use, liability and medical payments.
Dwelling: Helps cover the structure of the home (house foundation , roof, and walls). The dwelling will also help cover other structures that are physically attached to the home, such as a deck or garage.
Other Structures: This is an optional coverage offered in a homeowner policy. Other structure coverage will cover a detached garage, a tool shed and even your fence.
Personal Property: This coverage will pay to replace your furniture, electronics, kitchen appliances, and other stuff you own.
Loss of use: This coverage is also known as additional living expenses. If your home is uninhabitable due to a covered loss, and you need to rent a hotel, eat out, and other living expenses, this coverage will help you.
Liability: This coverage will cover someone who is not living with you and gets injured on your property. For example, someone slips over your broken porch and they have injuries. This coverage may help you pay for your resulting legal expenses or the medical bills for the visitor.
Medical payments: This coverage will help you pay for an expense related to an injury that occurred on your property.
What perils are covered by your homeowner insurance?
What is a peril, you may ask. A peril is an event or circumstance that results in property damage. It is very important to speak with your insurance agent to review to make sure you understand what is covered and what is not. Some of the most common perils that are covered under your homeowner insurance are Fire and smoke, lighting, windstorms and hail, explosions, vandalism, theft, falling objects, and even water damage.
How much coverage do I need?
One of the most common questions I get asked is “Do I have enough coverage?”
I personally like to ask certain questions to my clients:
- Have done any updated to the property?
- Have you purchased anything new for the home?
Written by: Premium Emilan