A standard home insurance policy provides coverage to repair or replace your home and its contents in the event of damage. This usually includes damage caused by fire, smoke, theft, or vandalism, or damage caused by a weather event such as lightning, wind, or hail. Your furniture, clothing, sports equipment, and other personal items are covered if they are stolen or destroyed by a fire, hurricane, or other insured disaster. Generally, coverage is 50 to 70 percent of the insurance you have on the structure of the house.
Housing coverage covers the structure of your home, including walls, floors, windows and roof. Built-in appliances, such as ovens, are also often included in home coverage. If your home has an attached garage, porch, or deck, these would also be included in your home's coverage. Follow these steps to calculate the amount of coverage you need for each of the six different sections of your home insurance policy.
Generally, all homeowner policies insure you for your personal liability when another person suffers bodily injury or property damage as a result of your negligence or the negligence of someone who is insured under your homeowners policy. The loss of use portion of your home insurance policy covers the additional living expenses you incur if your home is seriously damaged and you need to live somewhere else during repairs. For example, if your home or belongings are damaged by a fire or a major storm, home insurance can cover the cost of repairs so you don't have to. The site should also provide a typical average cost of home insurance in different counties and cities.
Research the home insurance companies you're considering through their ratings on the websites of major credit bureaus (such as A.) To insure these items at their full value, purchase an endorsement or a special quote for personal property and insure the item at its official appraised value. HO-3 insurance policies generally cover damage to your home for any cause, except those that the policy specifically excludes, such as an earthquake or flood. ALE pays the additional costs of living away from home if you can't live there due to damage caused by an insured disaster. It's generally only available for well-maintained homes in low-risk areas, and not all insurers offer it.
Keep in mind that home insurance is not the same as mortgage insurance, which you may have to buy if you spend less than 20% off your home loan. Insurance companies generally consider dealing with infestations to be part of regular home maintenance, which they don't cover. You don't even have to own your home to need insurance; many landlords require that their tenants maintain renters insurance coverage. Your insurance agent, broker, or authorized sales representative will be able to discuss your insurance needs and help you with the appropriate amount of coverage.
Homeowners insurance pays if an event covered by your policy damages or destroys your home or belongings. If your home is destroyed, your homeowners insurance company isn't likely to simply write you a check for the amount listed in your policy.