What Does Home Insurance Generally Cover?

Buying a home insurance policy and determining just what it covers is something that every homebuyer is faced with at some point. This is a valid concern for anyone who has to spend their hard-earned money. Of course, you dont want to waste money on a policy that doesnt truly protect your assets. But you dont want to lose your home and belongings because you didn’t acquire the appropriate homeowners coverage.

Prior to Purchasing Home Insurance

Before going out and shopping for a policy, it’s a good idea to first find out just what a home insurance policy will cover. This way, you can determine how much coverage you need and also estimate whether you need to purchase extra coverage.

Here is a brief list of what the basic home insurance policy covers:

  • Your structure, including attachments to the house like a garage.
  • Your lawn and landscaping.
  • Vacant land that you own.
  • You and your familys possessions, including items that you have borrowed but are keeping in the house.

Extra Home Insurance Coverage

In addition to the basics that a home insurance policy covers, here are some extra coverage options:

  • Liability coverage. This addition to your policy can protect you in the event that damage to your home results in someone else being injured. It can also include injuries caused by a household pet (ex. dog bites).
  • Dwelling coverage. This coverage pays for damage to a detached structure like a garage, shed, storage area, or fence.
  • Loss of use coverage. If your home is no longer suitable to live in as a result of damage, a storm, or some other disaster, this coverage will pay your expenses until your home is livable again.

Home Insurance Exclusions

Be aware when seeking homeowners coverage that damage caused by earthquakes and fires is not covered. If you need this type of coverage, you will need to buy separate policies.

Obtaining the right home insurance policy is important to the security of your property and family. Call an industry expert or do your own extensive research before, but make sure you’re protected with a good policy. Also, be sure to compare home insurance policies to save money and know exactly what you’re getting.