If you are a new homeowner or are considering the step-up from renting to owning a home, you will want to understand the basics of homeowners insurance. Getting the facts down ahead of time will help as you decide what type of coverage is the best fit for you and your home. She Will Insurance is here for you with friendly agents who can go over the details of how to set up a policy. Here is a rundown of the five general types of coverage you will find available in a homeowners policy:
With this coverage, your actual house and attached structures, such as a garage and patio, will be protected from a wide variety of perils. Fire, smoke, vandalism, damage by vehicle, the weight of snow/ice, and lightning damage are all covered. Earthquakes and flooding are not usually included, so you will need to check into adding additional coverage if these are a big concern in your area. Mold issues and general wear and tear are also excluded from your coverage. As Texans, you will want to check with your agent to see if hail, wildfire, hurricanes, and tornadoes are covered under your policy.
Wiring and plumbing, heating and cooling issues may also be included in your dwelling coverage.
This will take care of the rest of the structures that you own, which are not attached to your house. It goes beyond actual buildings, covering even fences, retaining walls, in-ground swimming pools, and gazebos.
If your home is broken into while you are away, this coverage will protect your actual belongings. You will want to decide if you should purchase replacement value or actual cash value for your policy. Actual cash value pays for the price of the items’ original cost, with a deduction for depreciation. Replacement value will repay replacement costs at current prices.
Personal property coverage often extends to property that you own, even if it is not kept at your home. So the things you have stored away in the previous city you moved from should be protected under this coverage.
Personal Liability/Medical Payments Coverage
With liability coverage, you will be protected against a lawsuit should someone become injured while on your property. It will pay for their medical bills and loss of wages due to their injury. The coverage extends to your pets. For example, you are walking your dog several blocks away when he becomes agitated, biting and injuring someone. Your insurance should cover their medical bills or your legal costs should you be sued.
It also pays when you cause damage to someone else’s property.
Loss of Use
Let’s say you had some extensive damage to your home thanks to a tree falling through your bedroom ceiling. During renovations, this type of coverage pays for your living expenses and food while you are displaced from your home temporarily.