Homeowners Insurance Coverages
Homeowners Insurance policies can be confusing and have many different sections and coverages. We’ve explained some common types of coverages you can choose from when applying for a homeowners insurance policy.
Personal Liability Coverage
In a very litigious society, you can’t be too sure whether or not someone will sue. Let’s say your son is throwing a football in the yard with his friend. The ball goes too far and smashes your neighbor’s window, consequently breaking an expensive lamp. You may be held legally responsible for the damage. Your homeowners insurance provides a minimum of $100,000 in personal liability coverage. Thankfully, your insurance company could pay up to that amount per occurrence. Common claims include medical bills, legal expenses, and injuries/property damage caused by pets.
Loss of Use Coverage
If your home is being repaired or rebuilt and is deemed uninhabitable, loss of use coverage (aka additional expenses insurance or part D coverage) can provide reimbursement for additional living expenses within reason. For example, if your home is damaged by fire and you are forced to vacate the property, your insurance provider could help to cover your hotel stay and restaurant bills while your home is being rebuilt. Loss of use coverage can only be used for a covered event, though, so be sure to speak with your agent to fully understand what your policy offers.
Other Structures Coverage
Provides coverage for structures on your property like fences and sheds. If a tree falls on your detached garage, your other structures coverage may help pay for the repairs. Generally, your other structures liability limit is about 10% of your home’s insures value. If your home is worth $500,000, a good rule is to have at least $50,000 of other structures coverage.
When applying for homeowners insurance, it is important to have a trusted advisor to navigate you through the process and intricacies of homeowners insurance policies. The benefit of working with an Independent Insurance Agency means that you have the power of choice and an advocate to help educate you and find you the coverages you need. We also can discuss the appropriate coverage amounts for your unique situation.