The main part of any homeowners policy is dwelling coverage. Your home contents insurance protects the walls, roof, floors, built-in appliances, and other important home parts from different risks. Fire, windstorms, hail, lightning, explosions, and vandalism are the most typical events that are covered. Should a severe thunderstorm cause a tree to fall on your roof, dwelling coverage takes care of paying the rebuilding or repair costs, after you cover the deductible.
It is necessary to point out that your home is insured up to the cost of full replacement, not the amount you could get for it in the market or how much you initially spent. Because of this, you’ll be able to fully refurbish the house even if construction expenses go up after you buy it.
Besides the main house, other kinds of buildings are included in this type of coverage
Your policy will also cover other structures found on your property beside your house. Examples of these are detached buildings and other fixtures.
- Sheds are places to store yard tools as well as any equipment you use only in certain seasons.
- Fences are made by using wooden or metal pieces to surround the area of your yard.
- Detached garages: A separate building found on your property.
- A gazebo or pergola is an outdoor spot you can use for fun and relaxation.
Normally, other structures coverage protects them against the same issues as your main house, such as fires, storms, and damage from vandalism. Should a hailstorm break your detached garage’s roof, the insurance company can pay the repair bill. Most of the time, this coverage is only a small part of your main home coverage, so if your house is protected for $300,000, the limit for other structures is $30,000.
This coverage helps you protect personal items in your home.
Homeowners insurance covers your personal property including furniture, electronic appliances, clothing, jewelry, and so on. It restores the money you would lose if things you own are damaged, destroyed,
or stolen by covered reasons. In the event burglars break in and take your television and laptops, personal property coverage helps cover the cost of replacing them.
Usually, your insurance will protect your possessions even if they are taken outside your home in situations such as car theft or traveling. Nevertheless,
some high-value things such as jewelry, art, or collectibles can only be fully protected with extra coverage add-on policies.
Relieving business owners from covering Legal and Medical bills
Not many notice it, but liability protection is one of the main components of a homeowner’s insurance policy. In case someone is injured on your property or anything you do results in damaged property,
this coverage saves you from financial risks. It takes care of your medical bills, payment of lawyers, and awards or penalties if you face a lawsuit.
For instance, if someone is injured on your icy driveway and has to see a doctor for their leg,
liability insurance will cover both the medical fees and any legal expense you have to pay. This type of protection is also effective if you or your family members get involved in an off-site incident.