Your home is more than just a roof over your head. Chances are it’s your most valuable investment, and one you likely can’t afford to replace if disaster strikes. That’s why protecting yourself with homeowners insurance is so important.
AN HO-5 HOME OWNERS INSURANCE POLICY COVERS
- Dwelling protection: Covers damage to the home and attached structures, such as a garage.
- Other structures protection: Covers stand-alone structures on your property, such as a fence, carport or toolshed.
- Additional living expenses coverage: Also called “loss of use,” this helps pay for temporary relocation and basic living expenses such as meals if a covered loss forces you to vacate your home during repairs.
- Personal property coverage: Pays to repair or replace belongings that are stolen or damaged in a covered loss — everything from your refrigerator to your cell phone are personal belongings.
- Liability coverage: Pays out if you’re found responsible for others’ injuries on your property or away from home.
- Medical payments coverage: Covers injury treatment costs for guests who get hurt on your property, or individuals you or your family members accidentally injure while away from home. This coverage kicks in regardless of who’s at fault.
COMMON OPTIONAL COVERAGES
- Water backup coverage: Covers damage caused by a burst pipe or other issues related to your abode’s plumbing. Note that this coverage does not cover flash floods, only water that comes from the ground up. Depending on the insurer, this coverage may be included automatically.
- Identity theft expense coverage: Helps reimburse you for expenses you incur while recovering from identity theft. Depending on the insurer, this coverage may also include help from an identity theft advisor, who can deal with creditors and bill collectors and possibly restore your credit.
- Scheduled personal property endorsement: Covers high-end items that exceed your regular personal property limits, such as jewelry or fine art.
THE FOLLOWING LIST ARE THINGS THAT ARE NOT COVERED BY MOST HOME OWNER INSURANCE CARRIERS:
- A SEPARATE POLICY CAN BE USED TO COVER FLOOD.
- Wear and tear
- Nuclear hazard
- Government action