homeowners insurance coverage

Homeowners Insurance Coverage Explained

It’s official: You’re moving into a new home. Whether it’s a starter home or your dream home, your to-do list should not be limited to unpacking, setting up furniture, or decorating. Protecting yourself, your family, and your property against the unexpected is far more critical. Homeowners insurance safeguards against loss due to accidents, disasters, or thefts. There are several different types of homeowners insurance coverages that you should be aware of to ensure your peace-of-mind.

What is Covered?

Your Home

Disaster can strike out of nowhere. A standard policy provides financial protection in the event of a fire, lightning strike, or another insured calamity. It will pay to repair, or depending on your coverage limits, rebuild your house. Insuring your home for its full property value is essential. The policy may also cover a small percentage of the cost of repairing or rebuilding detached structures such as a garage, fence, or she-shed.

Standard insurance policies do not cover flooding, earthquakes, and routine wear and tear. These protections are sold separately.

Your Personal Property

Your furniture, electronics, appliances, exercise equipment, and other personal items are covered under this insurance type. Damaged, stolen, or destroyed items, whether they were in your home or a stored off-site, are covered. Personal property insurance is automatically included in most policies, including renters, although coverage limits may vary. Conducting a home inventory is strongly encouraged.

While jewelry and collectibles are covered, dollar limits may exist, which is why purchasing a special personal property endorsement is ideal.

Injuries Incurred by Someone Else

If a friend injures themselves while on your property, or your son/daughter accidentally ruins a neighbor’s oriental rug, personal liability coverage has your back. Personal liability reimburses injured persons up to the limit of liability. Typically, the other party submits their medical bills directly to your insurance company for coverage. It will also cover legal fees if the other party files a claim against you.

Personal liability coverage usually starts at around $100,000, but you should discuss whether it’s a good idea to purchase more with an independent insurance agent.

Additional Living Expenses (ALE)

ALE pays for other accommodations such as hotel stays, resturant meals, and any additional costs of living off-site while your home is being repaired or rebuilt. There are usually dollar and time limits associated with this coverage type. Other limitations may also exist which is why you should contact an independent insurance agent to discuss all available options.

According to the Insurance Information Institute, ALE is separate from the amount available to restore your home to new. ALE may also cover lost rental revenue.

Free Homeowners Insurance Coverage Quote

As an independent insurance agent, Hegarty-Haynes Insurance, Inc. continually builds on our relationships with many established companies to negotiate the best insurance policies at competitive rates. Hegarty-Haynes is large enough to deliver superior quality services while remaining small enough to provide a personal touch. We provide auto, homeowners, renters, life, and business insurance. Contact us today at (480) 820-2297 for a free homeowners insurance coverage quote.

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