Having a homeowner’s insurance policy means so much more than simply being protected in case of a catastrophe such as a fire or tornado. Here’s a look at what today’s policies include and what they mean in your particular case.
What is covered?
A standard home insurance policy offers you physical protection for your home and personal property, as well as liability protection for an injury or damage to someone else’s things while on your property.
As mentioned earlier, your policy will cover any loss from fire, storms and most natural disasters that occur. The exceptions would be an earthquake or a flood, unless you purchase either an endorsement or a separate policy for flood insurance. It’s critical to remember this is you happen to live in areas where flooding is possible or in an earthquake zone.
Wear and tear
One thing to keep in mind with most homeowners insurance is that the company can depreciate your claim due to wear and tear. By that I mean if you have a roof that hasn’t been replaced in 25 years and a windstorm blows it to shreds, don’t expect to be fully reimbursed for a new one. The company will depreciate the amount and pay you for it.
The same concept goes for contents coverage unless your policy has replacement coverage. I would highly recommend you have a policy that includes actual replacement cost coverage. It is only a few dollars more per year and well worth the peace of mind if something does happen.
Insurance coverage for liability is equally important as well. If someone comes to your home, or just happens to be walking on your property, and slips and falls, you are covered for their injuries if they them.
Liability coverage would also pay if you had a tree and a limb broke off and damaged the neighbor’s car or home. There are many more examples, but this gives you a general idea of what is covered.
These are the major portions of any homeowner’s insurance policy that will help give you a better understanding of how valuable they can be.