Home Insurance Coverage Types

Nobody likes to imagine something happening with their property that puts their belongings or home in jeopardy. However, if the unimaginable does happen, it’s good to know what your home insurance will cover it.

Civil War era mansion in New Orleans.

This article details the different types of home insurance coverage. It can give you an idea of what your home insurance pays for in the event of a covered incident. Ask your A.P.A. Insurance agent for details pertaining to individual policies.

Types Of Coverage

Standard policies include:

• The structure of your home
• Personal Belongings
• Additional Living Expenses
• Liability Protection

Coverage For Your Home Structure

Your homeowner’s policy typically pays for repairs or replacement of the physical structure of the home if it’s damaged by lightning, hail or natural disasters. Sometimes, you may be required to purchase separate coverage for events that pose particular risks in your geographic area. This includes flood, fire and earthquake damages.

Home insurance typically covers detached structures — including a garage, gazebo, fence or tool shed, up to a percentage of your total insurance coverage. Home insurance doesn’t pay for damages due to regular wear.

Tip: Purchase enough coverage to rebuild your home in the case of a catastrophic loss.

Personal Belongings Covered

Every policy differs, but most cover personal belongings. This includes clothes, sporting equipment, furniture, and other items stolen or damaged by a covered peril. Typically, a home insurance policy pays up 50 to 70 percent of the cost to replace the structure of the home.

Tip: Taking an inventory of your belongings can help you determine the level of coverage required.

Home insurance usually covers expensive items like jewelry, art, and silverware. However, if you want to insure items at their value, you might want to get them appraised. Some policies cover plants, trees, and shrubs.

Liability Protection

Liability protection includes bodily injury or property damage for covered events caused by you or members of your family. It also handles damage your pets may cause. So, if your child or pet ruins the neighbor’s new carpeting, you’re probably covered — as long as it’s not destroyed.

Liability includes legal costs if someone sues you for covered perils. No-fault medical coverage in home insurance policies pays for injuries to other parties. If a friend slips and falls in your home, they can submit their medical bills to your insurer. This excludes coverage for family members living in the home and your pets.

Additional Living Expenses

Assisted living expenses coverage pays for hotel bills, restaurant meals, and other expenses if you can’t live at home due to an insured event.

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