Home Insurance

Home insurance helps protect one of your greatest assets, your home. But home insurance can also help
protect your other assets with its liability coverage portion. With coverage of your dwelling and personal belongings, your homeowner’s insurance provides you with the protection you need should something happen. Covered incidents typically include wind and hail damage, theft, vandalism, and even legal expenses if someone files a lawsuit against you.

Your home insurance policy includes 6 main coverage areas:

• Main dwelling

• Other structures

• Personal property

• Loss of use

• Liability

• Medical expenses

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The most important coverage is for your main dwelling. If your house burned to the ground in a fire, this coverage should be high enough to pay for the cost of building a new home. The coverage for other structures includes any other buildings and structures on your property, such as a fence or shed. 

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Home insurance also helps protect your personal property. Typical coverage reimburses you for the value of your items. If you select replacement cost coverage, insurance will cover the actual cost of replacing your item. Your home insurance also covers the loss of use of your home. If your home becomes uninhabitable because of a covered incident, home insurance will cover the cost of temporary living expenses. 

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Your home insurance also offers liability protection. This covers legal expenses if you are responsible for damage to someone else’s property or an injury to someone else. Your liability coverage helps protect you from using other assets to pay for legal claims. Medical expenses require separate coverage. This will cover hospital bills and other related expenses if someone was injured on your property.

Typical home insurance policies don’t cover flooding and earthquakes. Anytime water enters your home from below the ground, only flood insurance will cover the damages. You need to purchase flood insurance or add a flood insurance rider to your home insurance for this type of coverage. Earthquakes are not typically covered under your home insurance policy unless you add a rider. Finally, a standard home insurance policy covers your personal property at current value instead of the actual replacement cost.

Home insurance is necessary to help protect yourself from the cost of repairs or replacement after an adverse event causes damage to your property. If your home needs extensive repairs or has to be rebuilt because of a storm or fire, you don’t have to come up with the money out of pocket. Insurance even helps you pay for temporary housing expenses. Finally, the liability portion of your home insurance helps protect your financial assets in case of a lawsuit.