Homeowners insurance often provides a safety net for unexpected home-related incidents. Insured events can include mundane plumbing system damages or a spectacular event such as a runaway vehicle in your living room. Homeowners insurance frequently covers personal property loss through theft. You may receive liability protection if a friend takes a memorable header on your slippery floor. Insurance claim reimbursements hinge on appropriate in-force coverage, notes the National Association of Insurance Commissioners.
Structural coverage is easy to understand, as it involves insurance coverage on your home’s building and systems. Typical covered events include fire, explosion, lightning damage and accidental plumbing overflows. This coverage also extends to unattached structures near your house. Examples include barns, storage sheds and garages. Every policy has its exclusions, which can usually be remedied by purchasing a policy endorsement or companion policy.
Your homeowners personal property coverage includes items such as furniture, clothing, computers and artwork. You can even cover your spectacular diamond jewelry, up to specified limits. Home lender Wells Fargo reports that insurance companies commonly estimate personal property values at roughly half the home’s insured value. Increase your coverage by documenting additional items via videos, photographs or with a written list.
Homeowner liability coverage kicks in when your dog nails a visiting friend or when a visitor trips over an obstruction on your lawn. Liability coverage protects you and your family from financial damages from incidents for which you are legally at fault. Farmers Insurance Group recognizes that requested damages can exceed your liability limits. A personal umbrella policy piggybacks onto your homeowner’s policy. Add liability coverage in $1 million dollar increments.
Loss of Use Coverage
Loss of use coverage applies when your home is so damaged by a covered event, such as fire or burst pipes, that you cannot live there. Alternatively, a government order may not allow you to occupy your home due to structural damage. For covered events, normal living expenses are paid while your home is repaired. Expenses include hotels, meals and property storage for a limited time.
- National Association of Insurance Commissioners: A Consumer's Guide to Home Insurance
- All Insurance Info.org: Homeowners Insurance Basics
- Wells Fargo: Homeowners Insurance Coverage Options:The Contents of Your House
- Farmers Insurance Group: Home Insurance FAQ's: Liability
- Arizona Department of Insurance: Homeowner's Insurance: Frequently Asked Questions: What Does "Loss of Use" Cover?
Based in North Carolina, Felicia Greene has written professionally since 1986. Greene edited sailing-related newsletters and designed marketing programs for the New Bern, N.C. "Sun Journal" and New Bern Habitat ReStore. She earned a Bachelor of Science in business administration from the University of Baltimore.