Home Insurance Coverage – The Basics

Home Insurance Coverage – The Basics – You will never know when accidents or misfortunes will attack you. That is why insuring one’s home is an absolute necessity. Homeowners should never fail to get one in order to protect his or her hard earned property.
What is Home Insurance?
Home insurance is an insurance policy that protects your home and covers your financial needs in the events of accidents, theft and disasters. Disasters may include hurricanes, fires, hail storms and wind damage. However, giving you the amount that you need to pay the repair bills is not the sole responsibility of your insurance policies. It also covers the costly legal fees to protect you and your family against lawsuits if in case you are liable for the accident.
What is the standard policy coverage for your home?
Basically, there are six types of coverage. This includes the following:
Coverage A – Dwelling. It is the portion of the home insurance policy that covers the amount that you need to pay for the repair bills in the event of natural disasters like hurricanes, fires, hail storms, wind damage or lightning. There is a separate coverage policy if one wants to include flood and earthquake.
Coverage B – Other Structures on Your Property. It is the portion of the home insurance policy that covers the amount that you need to pay for the repair bills of the additional structural property you have other than your house such as garages, detached buildings and sheds.
Coverage C – Personal Property/Contents. It is the portion of the home insurance policy that provides you the amount that you need in replacing your other personal properties and contents in the event that they are destroyed during fire, hail, wind, lightning, hurricane or theft.
Coverage D – Loss of Use. It is the portion of your home insurance policy that provides you coverage in the event that your home is damaged or destroyed and you must look for a place to stay while repairs are being made. This includes reimbursement in your living expenses like hotels and restaurants.
Coverage E – Personal Liability Protection. This protects your family members against lawsuits in the case of dog bites to neighbors and accidents due to faulty railings.
Coverage F – Medical Payment. This is commonly known as MedPay wherein the policy covers the medical expenses in an event that an individual is injured and does not want to file a lawsuit against you.