Homeowners insurance can protect you from a devastating financial blow if your house or its contents get damaged or destroyed. People sometimes get confused about what homeowners insurance covers or assume that things are covered when they aren’t. Here are some important facts you should know.
Perils That Homeowners Insurance Does and Doesn’t Cover
A homeowners insurance policy will compensate you if your house or your belongings get damaged by a covered peril, such as a fire or a storm. Some policies only cover a limited list of perils, while others cover all perils except ones that are specifically excluded.
A standard homeowners insurance policy doesn’t cover flood damage. If you’re concerned about that, you can purchase a flood insurance policy. You can also buy a separate policy to cover other types of perils, such as earthquakes, that your standard policy excludes.
Homeowner’s insurance won’t cover damage that can be attributed to wear and tear or a lack of maintenance. Taking care of your home is your responsibility. That means that your insurer will pay to have your roof fixed if it gets damaged by a storm, but not if it starts leaking because you didn’t have it inspected and maintained on a regular basis.
Coverage for Personal Property
When it comes to personal property coverage, you can choose a replacement cost or an actual cash value policy. Opting for replacement cost coverage will require you to pay higher premiums, but you’ll receive a substantially larger payout if you file a claim.
If you have replacement cost coverage, the insurance company will provide you with an amount that will be enough to replace a damaged or destroyed item with a comparable new one. If you have actual cash value coverage, you’ll receive an amount that takes depreciation into account.
Other Types of Coverage
If someone who doesn’t live in your home gets injured on your property, your homeowner’s insurance policy’s liability coverage can pay the individual’s medical bills and cover associated legal expenses. That coverage won’t apply if a member of your family gets hurt on the property.
If your house gets damaged or destroyed and you have to live somewhere else temporarily, your homeowner’s insurance policy will cover additional living expenses. That can include extra costs for lodging, meals, transportation, and other necessities.
Your Deductible Will Affect Your Premiums and Compensation
When you purchase a policy, you’ll choose a deductible. That’s the amount you’ll have to pay out of your own pocket if you file a claim. The insurance company will cover the remainder of the bills. A policy with a higher deductible generally has lower premiums and vice versa.
Compare Quotes for Homeowners Insurance Coverage
Insurance companies offer numerous options to suit homeowners’ varying needs. Premiums can vary widely depending on the type of coverage you choose, as well as individual factors.
Petruzelo Insurance can gather quotes from several leading insurers and help you find the right coverage at affordable rates. Contact us today to learn more.