What is Covered by a Standard Homeowners Insurance Policy?

There are sets of limits that can be under the homeowners insurance policy coverage. Home insurance policy is a must need insurance. It covers medical payments, covers repair or replacement of the damages to dwelling due to named perils, can reimburse in an actual cash value basis or replacement cost basis to your belongings damages, liability coverage and additional living expenses.

Dwelling Coverage

This covers the damaged dwelling of your home. Including, the shed and any attached and unattached structures (but inside your real premises) to your home. The insurer will provide for the repair and replacement to the insured’s home, only if the damage was due to acceptable named-perils. Including fire, windstorm/hail, sprinkler leakage, vandalism, volcanic eruptions, etc. This coverage has a basis. and that is on what kind of home you have and what limit of the policy the insured purchase. You must purchase insurance coverage that is equal to at least 80% of your home’s replacement cost, for the insurer to cover all the cost of repair to your damaged home minus the deductible. The higher the limit the lesser the deductible. This means the higher the premium you purchased the lesser you will pay for the cost of the damages in your home.

Personal Property

It covers the damages to your personal property that is on your policy. This will cover if the loss is due to theft and named perils only. This coverage can reimburse you by replacement cost value minus depreciation or actual cash value basis. Every policy has certain limits to cover the said property. So if possible get higher coverage and limits to better protect all your personal belongings.

Liability Coverage

This coverage provides legal assistance if the person you or your family caused harm into, file a lawsuit against you. And in some instances, if your pet is liable for someone’s injury. Therefore, you are liable to compensate that person. The insurer will pay for the cost of the medical payment, and legal assistance depends on the limit of the policy the insured purchased. For further damage assistance, you must consider purchasing an additional Personal Umbrella policy, this will cover all the losses that are beyond the set limit of homeowner’s policy liability coverage. Furthermore, it only costs 300 dollars a year extra in your premium.

Medical Payments Coverage

Covers the cost of the treatment for the injury of the person, regardless of who is at fault. And this can also prevent the person from filing a lawsuit against the homeowner.

Additional Living Expenses

The insurer will provide living expenses if the insured house your living at gets damages by acceptable named perils only. And provided that the authorities supervise you to lawfully leave the house to prevent any further damages and injury. The insurer will provide for your basic living needs and only provides for your clothing, toiletries, food, and hotel expenses. There is no limit on insurers providing for additional living expenses until the house of the insurance owner has been repaired.
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