Home insurance coverage has more fine print when compared to auto insurance. This page provides a high level overview with links to more detail.
The Highlights of Home Insurance
Home insurance has different coverages for different parts of your home.
Dwelling – Obviously, homeowners insurance covers your dwelling. The studs, floors, sinks, plumbing, etc. is included in this coverage. This is also called coverage A and that is how much your insurance will cover in the event your home needs to be completely rebuilt. It’s very important that you review the inputs of this coverage amount, so that you will get enough money to rebuild your home and don’t have to pay out of pocket.
Content – This is stuff inside your home like clothes, couches, toys, computers, etc.. There is also a limit to how much your insurance will pay for your stuff under Coverage C. There are even limits on individual items like jewelry, rugs, art, or silverware. If you have more expensive items, review with your agent that you have enough coverage.
Casualty – The less used coverage, but just as important is liability coverage. Some policies also cover for libel or slander (an example would be posting a bad business review on a public website and the owner of the website sues you).
Other Stuff – Other coverages include other structures on the property, living expense costs if your not able to live in your home because of a covered peril, and medical expenses for minor accidents.
When does home insurance kick in.
In the details of your insurance policy it will list what perils are covered. Your dwelling may cover different perils than your content. A general rule to follow is that insurance pays for accidents or things that happen suddenly, like a hail storm.
There are limits on your coverage, which are shown on the declarations page of your policy. There are specific limits for certain items like jewelry.
Insurance does not cover wear and tear or improper installation. It also doesn’t cover earthquakes or floods. You have to buy a policy specific for those weather events.
Remember, the point of insurance is to make you whole again, not for you to benefit financially.
Click Below for More on Home Policies
More specifics on insurance coverage when you own your home.
Understanding the fine print of what the homeowners association insurance policy covers.
You can still benefit from having insurance as a renter.
Home is where you make it. We’re here to help you protect it.