When most people think of their homeowners insurance policy all they can picture is paying a lump sum of money, or making monthly payments on top of their mortgage payment. However, your homeowners insurance can be your best friend if disaster strikes. It can also be extremely useful when smaller incidents happen to occur. In fact, homeowners insurance helps protect you, your home, and your belongings from a variety of unexpected events.
Homeowners insurance policies are certainly not a one size fits all type of product. While a typical homeowners insurance policy includes particular coverage, it is usually customized in order to meet each individual homeowner’s distinctive requirements. You can purchase additional coverage for increased protection. The typically homeowners insurance policy provides coverage for damage caused by fires, lightening strikes, windstorms, and hail.
However, it is important to be aware that not all natural disasters are covered. For example, damage caused by earthquakes and floods are not typically covered by the standard homeowners insurance policy. If you live in an area of New England that tends to flood, you will need to apply for a separate Flood policy. So what specifics does a standard homeowners insurance policy cover? The following information will provide you with the answer to that question.
A Standard Homeowners Insurance Policy Includes Dwelling Protection
Dwelling Protection is one of the basic coverage’s of your homeowners insurance policy. In essence, it helps cover the replacement cost or repair costs of the structure of your home if damage is caused by an item that is covered in the policy. For example, if a fire destroys your kitchen, the Dwelling Protection will cover the repair costs. Dwelling Protection also covers other structures that are attached to the main property such as an attached garage or deck.
A Standard Homeowners Insurance Policy Includes Other Structures Protection
The majority of homeowners insurance policies also include coverage for other structures that are on the property, but are not attached to the house. In essence they are free standing structures such as a detached garage, shed, or fence.
A Standard Homeowners Insurance Policy Includes Personal Property Protection
Your Homeowners Insurance policy does not only cover damage to the structure of your home, it also provides you with coverage if your personal belongings are damaged, destroyed, or stolen. For example, if your big screen television is stolen, the Personal Property Protection may pay to replace it. Many insurance companies offer Optional Coverage that can further help protect the expensive items that you own such as jewelry, watches, and fur that have values above and beyond your Personal Property coverage limits.
A Standard Homeowners Insurance Policy Includes Liability Protection
The Standard Homeowners Insurance policy typically provides you with liability coverage when someone that is not living at the property is injured while visiting your home. For example, if a visitor trips on the stairs and breaks his or her leg than the Bodily Injury Liability coverage will help pay for your resulting legal expenses. It will also cover your visitor’s medical bills if you are found at fault. You may be able to increase the Liability Protection coverage limits by adding a personal umbrella policy if need be.
Coverage Limits And Deductibles Explained
Each of the coverage’s in the Homeowners Insurance policy is subject to a limit. In essence, the limit is the maximum amount of money that your policy will pay toward a covered loss. You may be able to adjust your coverage limits to your needs based on the value of your home and belongings. In most cases, you will be required to pay a deductible prior to your insurance benefits kick in to help cover the loss or repair. The deductible is a set amount and can be lowered or raised depending on how much you are paying for the policy. For example, a lower deductible will cost X amount more per month, while a higher deductible will save you Y amount per month.
In conclusion, you should not think of your Homeowners Insurance policy as an expense, it is more like a friend when you are in a time of need. If you have any questions, please call (508) 831-0133 to contact an associate at Zawada Insurance. We are happy to walk you through the details of your life insurance policy and explain your coverage options. We look forward to helping you with all of your personal and or business related insurance needs.