What Does Home Insurance Cover?
Homeowners insurance is a type of property insurance that covers loss, damage and liability caused by a variety of perils (called "named perils" in the insurance world), including fire, theft and windstorms. Homeowners insurance pays medical bills, wages lost and other expenses when you are sued because of injuries that happen on your property.
What Does House Insurance Cover?
A homeowners' policy will typically include a number of different coverages to protect your home, personal property and other structures. You should also have liability insurance to pay for court costs, if you're sued for damaging someone else’s property or injuring another person while on your property.
Homeowners Policies HO-3 offer open-peril coverage.
Homeowners' insurance is available in two different forms: comprehensive and modified. The former provides protection against damage from any peril, whereas the latter only covers named perils. Both options offer some protection against theft, fire and other hazards. However, the latter is more expensive but can prevent large losses, especially if you own expensive items like jewelry or furs.
Many home insurers provide HO-3 policy options.
Purchases can be made on the basis of actual cash value or replacement cost. Your insurance company will pay for the materials to be used in a rebuilding your home at replacement cost if it is done from scratch. This method can cost more if your home is being renovated or insulated. The actual cash value is the amount your home would be worth on the open market, less depreciation.
Liability Coverage
A standard homeowners insurance policy will cover any damages that occur on your property. This is particularly true if children are playing on your property or if a pet bites. This coverage comes with a personal limit of liability that protects you from claims for injuries and other damages on your property.
Insurance for Loss or Use
Loss of Use claims can be used to pay for temporary living expenses such as hotel bills or other temporary living costs that you may incur while your home undergoes repairs or reconstruction. This coverage amount varies from policy to policy. It is usually between 20-50% of the policy.
Personal Property Insurance
Most homeowners policies will replace your furniture, electronics and other personal possessions, if damaged in a covered loss. Some homeowners insurance policies include special coverage for items of high value, like jewelry or art.
Liability Insurance
This section of the policy will protect you in case someone sues your insurance company for an injury or damage that occurs on your property. This portion of your home insurance pays for medical expenses, lost wages, and other expenses incurred as a result injuries or damages to another person on your property.
ALE Endorsement
This endorsement will pay for the restoration or repair of your home in order to meet new building codes and ordinances which were in effect when it was built. The cost for this endorsement can be a small additional premium, but it is well worth the peace of mind.