Shelter is a basic necessity of life. We spend a significant portion of our lives in a home of some kind – whether it be a single-family house, a townhouse, a condominium or an owner-occupied multi-family dwelling. More often than not, these homes are filled with some of our most cherished items: personal belongings and memories that we have accumulated, and will continue to accumulate, over the years. Losing your home – or worse, your home and the belongings inside it – would be catastrophic to anyone’s life, emotionally as well as financially.
This is where homeowner’s insurance comes in. A homeowner policy – whether it’s for a single or multi-family family house, townhome, or condo– can protect your home and your belongings from the various risks that could potentially occur in one’s life. It can also help you rebuild your home in the event of a total loss, up to your policy’s limit.
Types of Homeowner’s Insurance Coverage
A standard homeowner’s insurance policy includes the following multiple types of coverage. The typical home insurance policy usually covers the following areas:
Dwelling Coverage
Dwelling coverage is the basis for all homeowner’s insurance policies. It typically covers your physical dwelling. This includes all elements of your home, including your ceilings, walls, and flooring.
The standard dwelling insurance offers coverage for fire, extreme weather, vandalism, theft, and damage from a motor vehicle. If tragedy or disaster strikes, dwelling coverage will help ease the burden of having to repair the damages to your dwelling.
Other Structures
Other structures that are not attached to your house, such as detached garages, storage sheds, and fences can certainly become damaged or destroyed. If you’re able to secure coverage for these structures, you’ll be able to rebuild or repair it!
Loss of Use
Loss of use provides additional living expenses (costs over the normal amount for house, food, and other essential expenses) if you must temporarily move because damage to your house from a covered loss renders it uninhabitable.
If your home is no longer hospitable and damaged to the point where you cannot safely stay within your house, loss of use coverage will handle your relocation. The specifics of your relocation will be detailed in your specific plan, and can vary from rental homes to a hotel room.
Personal Property
Personal property coverage protects the items inside your home, such as furniture, clothing, and personal items, so that if a covered loss were to occur, you would receive funds for the value of these items, as defined by your policy.
If you own any high-value items like an engagement ring, specialized electronic equipment, and fine arts, you may need to purchase a separate personal articles policy to cover the full worth of those items against potential loss. Alternatively, you could have it scheduled on your policy.
Personal Liability
Personal liability coverage will cover damages in the event that a guest at your home sustains an injury anywhere on your property. Having personal liability coverage is crucial in not being held liable when an accident happens at your home.
Types of Damages Covered by Homeowner’s Insurance
The average homeowner’s insurance policy offers coverage for damage caused by an abundance of potential issues. The list includes things like:
- Fire or smoke
- Explosions
- Lightning
- Hail and windstorms
- Theft
- Vandalism
- Damage from vehicles
- Damage from aircraft
- Riots and civil commotion
- Volcanic eruption
Other types of natural disasters, like floods and water damage or earthquakes, however, are not typically covered. You would need to purchase additional flood insurance to ensure coverage in the event of an unexpected overflow of water.
Hanson & Ryan Can Help You Choose the Right Homeowner’s Insurance
The number one mistake people make most often when shopping for home insurance is that they shop for it based on price alone. The best price – or premiums, as it is referred to in the insurance industry – does not always equate to the best coverage, and not all homeowner policies are created equally. Many have different endorsements, limits, conditions, and exclusions that only a licensed professional can educate and advise you on.
That’s why using an independent agent, like Hanson & Ryan, for an insurance quote is vital to your insurance protection. We can review and evaluate your exposure and offer you the coverage you need at a competitive price.
If you’d like to discuss your different homeowner’s insurance options or would like further clarity on the different coverage options, give the insurance agents at Hanson & Ryan a call today!
