our end! You are about to become a fully qualified homeowner. Before you let the long home buying process pass and you start enjoying the first moments of home ownership, make sure you are on top of the home insurance process.
After dedicating a lot of time, effort, and money to buying your new home, you’ll want to make sure your home has the proper coverage it needs.
Of course, you’re probably not even sure what kind of miscellaneous coverage you need.
While there is standard home insurance, every home and every homeowner has individual exposures that must be addressed. And while insurance may seem like a thorny process, if it is seen as covering piece by piece, it is easy to understand.
Insurance clerks summarize six main forms of coverage so that the average person can understand the information.
The Six Basic Forms of Homeowners Insurance
1. Covering your home: This coverage protects you from damage to the actual buildings of your home. If there is a covered loss – loss incurred as a result of events such as fire, storm, theft and/or vandalism – you will be compensated up to the limits of repair or rebuilding work. In order to assess your coverage needs in relation to this, you and your insurance professional can estimate the cost of rebuilding your home. Additionally, if there is a mortgage on the home, the lender will require explicit types of coverage, as well as specific limits and discounts.
2. Your other structures: Any detached garage or similar, such as sheds or fences, will be protected under this type of coverage. Coverage is generally up to 10% of your home insurance amount, but you can request wider coverage if you think you need it.
3. Your personal belongings: This aspect of insurance protects you from damages or losses in connection with your personal belongings. This includes furniture, sporting goods, computer systems, kitchen appliances, etc. The standard policy will cover the actual monetary value, but if you think it’s best to use replacement cost coverage, you can opt for it. Both of these forms of coverage are subject to the limits and deductions specified in the policy.
4. Your Loss of Use Coverage: In the event your home is so badly damaged from a covered peril that you cannot live in it during repair or rebuilding, this type of coverage pays for temporary living costs.
5. Personal Liability: This coverage will protect you from filing a lawsuit if you or other members of your family injure another person or cause damage to another person’s property.
6. Medical Payments: This type of coverage will cover the medical costs of the injured in your home.