Your homeowners insurance helps protect your home, belongings, and you financially when unexpected damage or injuries occur. Types of coverages homeowners insurance policies may include are:
Dwelling
Pays for damage to your house and structures attached to your house. This includes plumbing, electrical wiring, heating systems, and permanently installed air-conditioning systems. Coverage applies when these parts of your home are damage and need repair or replacement.
Other Structures
Pays for damage to structures not attached to your house. This includes fences, tool sheds, freestanding garages, and similar structures located on your property.
Personal Property
Reimburses you for the value of your personal possessions like furniture, electronics, appliances, and clothing. Coverage applies to items that are damaged or lost, even when they are not on your property including items kept in an off-site storage locker.
Personal Liability
This covers the financial loss if you are sued and found legally responsible for injuries or damages to someone else on your property.
Loss of Use
Pays for some of your additional living expenses if you home cannot be lived in while it is being repaired. This coverage helps with costs you wouldn't normally have if you home were not damaged.
Medical Payments
Covers financial loss if you are sued and found legally responsible for injuries or damages to someone else. This protection applies when you are held responsible for home or property damage.
Limits of Coverage
Your insurance agent will help determine the right amount of dwelling coverage when you first purchase homeowners insurance. It is important to know replacement cost is not the same as market value. Market value includes the land and changes with the real estate market. Be sure to review your coverage regularly. If dwelling coverage falls below 80% of your home's full replacement cost, your insurance company may reduce your claim payout.
How Limits are Determined
This is an example to give an idea of limits for coverages. Check with your specific policy as it may differ from this table:
|
Coverage Component |
Typical Limit of Coverage |
|
Dwelling |
You Choose |
|
Other Structures |
10% of Dwelling Coverage Limit |
|
Personal Property |
50% of Dwelling Coverage Limit |
|
Loss of Use |
20% of Dwelling Coverage Limit |
|
Personal Liability |
You Choose |
|
Medical Payments |
You Choose |
