What is Homeowners Insurance?
A Homeowners Insurance policy is designed to protect you from the loss of, or damage to, your home in such cases as fire, theft or hail damage, a homeowners insurance policy will provide financial protection to cover the cost of repairing or rebuilding your home if you experience any of there types of events. A standard homeowners insurance policy consists of 6 important types of coverage:
- Dwelling Coverage for your homeowners insurance, protects against financial loss to the physical structure of your home. Items related to this are the foundation, frame, walls and roof. The other coverage types are expressed as a percentage of your dwelling coverage. The dwelling coverage you need for your specific homeowners insurance policy is calculated by taking into account the square footage of your home and local construction costs.
- Other Structures Coverage protects the structures on your property other than your home including such things as detached garages and sheds.
- Contents Coverage is part of a homeowners insurance policy that provides protection for your belongings in the event they are stolen or lost in a covered claim.
- Loss of Use Coverage provides assistance in the event that your home becomes uninhabitable because of a covered claim.
- Personal Liability Coverage is there to provide you financial protection in the event you are presented with a lawsuit. This type of coverage in your homeowners insurance policy is available in increments of $100,000.
- Medical Payment Coverage provides payments if someone is injured on your property. This coverage is referred to on your homeowners insurance policy as MedPay, and is only applicable in the event that you are not being sued for the injuries.
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