Home Insurance Coverage Areas
Most people know that home insurance covers repairs to a home if it is damaged by a storm. However, your insurance policy offers several additional coverage areas to protect your asset and your family. Every home insurance policy typically includes the same main 6 coverage areas:
- Main dwelling
- Other structures
- Personal property
- Loss of use coverage
- Personal liability coverage
- Medical payments to others
While the policy insures your main dwelling, it also covers other structures on the property, such as sheds or detached garages. The personal property inside your home is also included in your insurance policy. If your home becomes uninhabitable because of a covered incident, your policy includes loss of use coverage. Finally, there’s a personal liability portion and medical payments coverage. If someone is injured on your property or you damage the property of others, your liability and medical payments coverage will protect your financial assets.
What Does Home Insurance Cover?
Your home insurance protects from many catastrophes, natural and man-made. Here is a list of events typically covered by your policy:
- Wind
- Storm
- Hail
- Fire
- Theft
- Vandalism
- Water damage not from flooding
Your policy may exclude specific events, such as sewage backup or acts of war. You can purchase additional coverage options to include flooding and even earthquakes.
Additional Coverage Option
Certain natural disasters, such as flooding and earthquakes, are not automatically included in your home insurance policy. You may purchase separate flood and earthquake insurance or add a rider to your policy. When you insure the main dwelling, you want to consider insuring it for the cost of rebuilding instead of the current value of your home. This will protect you from having out-of-pocket expenses if your home needs to be rebuilt from the ground up.
The default coverage for personal property is the actual cash value of your items. You can elect replacement cost value coverage to allow you to purchase replacement items with insurance proceeds if they get stolen. If you have electronics, jewelry, collectibles, and other valuables, your home insurance may not cover the loss of these items. You need to purchase additional insurance for these valuables.