While every homeowner's insurance policy is unique, most offer the same primary types of coverage. Before you assume that your policy provides these things, you might want to ask an agent. Your agent can explain what your plan includes and additional coverage types you can add to it. Here are the four primary things a standard homeowner's insurance policy generally covers.
Dwelling Protection
The main reason people buy homeowner's insurance is for dwelling protection. Dwelling coverage refers to the protection you have for your home's structure. Your home's structure is your dwelling, and you will need enough coverage to replace the house. For example, if your house is worth $200,000, you might want a policy for $250,000 in dwelling coverage, as this is the amount it might cost to rebuild your property. You can ask your agent how much coverage to have on your policy, and they will provide a suggested amount.
Personal Property Protection
The second typical thing that home insurance covers is your personal property. Personal property refers to the things you own. If you look at your home, you will see furniture, kitchen items, clothing, and much more. These are your personal things, and you need protection for them through your homeowner's policy. To get the right amount of protection, you might want to add up the values. You can write an inventory list of everything you own and find out the values. Completing this step helps you document your property and have enough protection for it through your home insurance plan.
Liability Insurance
A standard home insurance policy also provides liability coverage, which is essential. You may never need to utilize this part of your plan, but you will be glad you have it if you need it. If a person sues you for injuries that occur on your property, your liability insurance covers the costs.
Additional Living Expense Coverage
A typical policy also generally provides additional living expense (ALE) coverage. If you ever encounter damages to your home from a covered peril, you might be forced to move out of your house. If so, your ALE protection will compensate you for any extra costs you incur during this time, including the costs of rent and food.
Buying a home insurance plan that provides these four things might be enough for you. If you would like more information about additional coverages you can add, talk to your insurance agent today. Contact a home insurance company for more information.
