This covers your living expenses when the damage of your house is due from certain perils under the insured’s homeowners policy. This will cover the basic necessities, but only the cost of living in the hotel or apartment, toiletries, clothes and food. Not more than that.For example: assuming that your house replacement cost is $500,000, you must ensure your house for at least $400,000. Which is 80% of your house replacement cost. If you have insured your building for only $360,000, and your house incurred damage that cost $280,000. The insurance company will only pay $311,110. ($360,000/$400,000x$280,000) (insured limit coverage / 80% replacement cost of the building X the cost of the damage), for the damage. You will need to use your own pocket money for the rest of the cost of the damage.
This will cover the medical expenses if one of your visitors or a person that is not living in your house got an injury inside your premises. Your Homeowners Bodily injury liability coverage can cover these circumstances. Exclusion, if the injury of the person is due to work that he/she is doing at your house. This can also cover the expenses for the treatment of your neighbor when your pet is bitten by one of them. You can also add a personal Umbrella policy to your homeowner’s insurance policy, this is extra liability coverage that goes beyond the limit of homeowner’s policy. If the family of the person you have caused injury to sue you the insurance can cover you.