A detailed look at the different types of homeowners insurance.

Today we’re talking about homeowners insurance. Even though I’m not an insurance agent, this question seems to come up a lot: “What do I need to know about homeowners insurance?”

The standard homeowners policy is divided into two sections: property coverages and liability coverages. Let’s start by taking a closer look at the types of property coverage:

Coverage A - Dwelling: provides protection for your home and the structures attached to your home.

Coverage B - Other structures: covers the structures other than your home located on your property such as a detached garage or shed.

Coverage C - Personal property: covers the contents of your home such as furniture, appliances, clothing, and toys.

Coverage D - Loss of use: provides coverage for your additional living expenses when you have lost use of your home. For example, if you have to vacate your home due to damage from a covered loss such as fire or tornado, this coverage will pay for the additional cost of a hotel or other temporary living expenses until the damage to your home can be repaired.

One important note about homeowners insurance is that not all causes of loss are covered. Since not everyone’s home is within a flood zone, you might be able to purchase a separate policy to provide coverage. Your insurance agent can help with that.

Now let’s take a look at section two of the homeowners policy: liability coverage. Section 2 includes 2 coverages: personal liability and medical payments to others.

“The most important thing to remember is your policy should protect YOUR needs.”

Personal liability provides coverage when you are legally liable for bodily injury or property damage to others. It also covers injury or damages to others caused by any relatives living with you.

Let’s say you’re having a cookout and one of your guests accidentally gets injured on your property because of a broken step at your door. Your guest can decide to sue you for the injuries received because of your negligence. That’s when your homeowners policy’s liability coverage will come into play. It defends you against lawsuits and helps pay for expenses associated with those lawsuits.

The second liability coverage provided in your homeowners policy is medical payments. This helps cover medical bills incurred by invited people who are injured on your property as a result of your personal activities. Remember your injured cookout guest? Medical payments coverage will help cover the cast and stitches they may receive due to their injuries.

Insurance and all of the details around it can be confusing. This video is just a short overview of the primary coverages provided by a standard homeowners insurance policy. Just like every home is different, so is every insurance policy. The most important thing to remember is your policy should protect YOUR needs.

To ask questions and learn more about what coverages you need, contact your local insurance agent right away. As always, if you have any real estate questions or are thinking of selling, buying, or investing, give us a call or send us an email today. We look forward to hearing from you.