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. And more often than not, these homes are filled with some of our most cherished items: personal belongings and memories that we have accumulated, and 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, and it can help you rebuild your home in the event of a total loss (up to your policy limit).
Types of homeowner’s insurance coverage
A standard homeowner’s insurance policy includes the following types of coverage:
- Dwelling Coverage – Dwelling coverage is the basis for all homeowner’s insurance policies. It typically covers your physical dwelling (including ceilings, walls, and flooring).
- Other Structures: Covers structures not attached to your house, such as detached garages, storage sheds, and fences are damaged or destroyed by a covered loss.
- 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.
- Personal Property – Personal property coverage protects the items inside your home, such as furniture and clothing, 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 or have it schedule 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.
Types of damages covered by homeowner’s insurance
The average homeowner’s insurance policy offers coverage for damage caused by things like:
- Fire or smoke
- Hail and windstorms
- 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.
Choosing the right homeowner’s insurance
The number one mistake people most often make when shopping for home insurance is that they shop for it based on price alone. The best price – or premiums, as it is known 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.