A Homeowners Insurance Policy (also known as a HO-3 policy) can cover damage caused by vandalism, lightning, windstorm, hail or fire. Normally, damage caused by earthquakes and floods are not covered by basic homeowner insurance policies. Elective policies and homeowner insurance coverages may be available to cover damage due to additional perils.
Other Home Insurance Coverage
A Homeowners Insurance Policy has the following categories that can help ensure your asset and home have the adequate protection.
Dwelling coverage can help you pay to repair or rebuild your home if damaged by a covered cause of loss. You want to buy enough dwelling coverage to cover the estimated cost to repair or rebuild.
Other Structures Coverage
Coverage for other structures can pay for covered damages to detached structures like fences, sheds and garages on your property.
Personal Property Coverage
Coverage for Personal property can pay you for the personal items in your home that could get destroyed or damaged by a covered cause of loss, which could include your electronics, sporting goods, furniture and clothes. Special limits of liability may apply to some items.
Loss of Use Coverage
Coverage for Loss of use can pay your additional living expenses if you must relocate temporarily while it is in the process of restoration. This coverage is subject to terms and limits.
Personal Liability Coverage
Coverage for Liability can help protect you in case of a claim and can provide a defense on a lawsuit if a member of your household or you are responsible for causing property damage or bodily injury to others.
Deductibles and Limits for your Home Insurance
Home insurance deductible is the amount of a covered claim that is your obligation. The amount you choose as a deductible should depend on how much you are prepared to pay if you have a covered loss.
Home insurance coverage limits (the amount of homeowner’s insurance you buy) begins with your dwelling coverage. The limits of coverage on other standard coverages in the homeowner’s policy that are normally calculated as percentages of the limits on the dwelling.
Homeowners Insurance Additional Coverages
Coverage for Special Personal Property
Special coverage for content or personal property can provide broader protection for the possessions in case of a covered loss. Special personal coverage can cover your personal property in more circumstances than a homeowner’s policy.
Replacement Cost Contents
Replacement cost on Personal property loss settlement coverage provides for settlement of covered personal property losses based on replacement cost at the time of loss, with no deduction for depreciation. Replacement cost coverage is subject to applicable policy deductibles, and special limits apply to items such as furs, watches and jewelry.