What Does a Homeowners Insurance Policy Cover?

A homeowners insurance policy is a type of property insurance that protects you from losses and damages to your home and personal belongings. Additionally, it provides you with liability coverage that protects you from lawsuits stemming from accidents that occur on your property.  

Homeowners need to understand the importance of obtaining homeowners insurance coverage and the different things it covers.

The Importance of Obtaining Homeowners Insurance Coverage

You can acquire homeowners insurance coverage either through your lender or separately. You cannot get a mortgage without it, as you will be required to provide the lender with proof of insurance on the house before they can give you a loan.

You can compare the different policies and select one that suits your needs and requirements. Payments are usually grouped within your monthly mortgage payments. It is essential that you get a homeowners insurance policy, as it protects you against unexpected events and incidents that may arise.

What Does Homeowners Insurance Cover?

A basic homeowners insurance policy covers the following things:

  • The structure of your home, built-in appliances, and wall-to-wall carpeting
  • Your personal property that is not connected to or built into your home, such as clothing and furniture
  • Personal liability in the event an accident happens in or on your property, including damages, medical bills, or funeral costs
  • Reconstructing your home or restoring it to meet the current building codes after your loss
  • Other structures of your home such as a shed, barn, detached garage, fence, or gazebo
  • Extra living costs if you are unable to live in yourhome due to damage

However, this is just basic coverage provided by a homeowners insurance policy. You would be surprised to learn that most cover more than just your house and personal belongings.

Surprising Things Homeowners Insurance Policy Covers

Homeowners insurance policies also cover the following things:

  • Mandatory Upgrades and Spoiled Food – If a house burns down during a fire accident, your state’s law may require your insurance provider to install fire sprinklers, as they are required by law, during the reconstruction of the house. It also provides you coverage for spoiled items due to a power outage.
  • Slander, Libel, and Dog-bite Lawsuits – If you are a dog owner and your dog bites someone, your insurance provider will compensate you by paying for medical expenses and lawsuits filed against you.
  • Additional Living Expenses and Falling Items – If snow damages your property, the pipes burst, or you need additional living expenses, your homeowners’ insurance policy will cover you for it. The same goes for items that fall on and damage yourhouse.
  • Lightning Damage – Lightning strikes not only risk your life, but they also damage your property and valuable possessions There’s no way you can prevent it, but you can invest in a homeowners insurance plan to cover the repair costs. In 2016, $12.4 million were paid out by insurance companies in this regard

Remember that the items covered under a homeowners insurance policy differ from state to state. However, the list above includes the basic coverage of most homeowners insurance policies.

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