The Essential Coverage Within Homeowners Insurance

Everyone needs homeowners insurance, and you will probably spend a fair amount of time with your agent as you determine the specific limits, endorsements deductibles and other terms that will make your policy unique. However, you cannot make your policy specific without starting at the beginning, and growing your policy on top of the standard coverage options the plan provides. 

What are these standard coverage options, and why are they considered so essential to your security within your home? All in all, homeowners insurance is designed to protect your property and financial security against any number of unexpected problem. Always include at least the following benefits in your plan from day one. 

1. Dwelling Insurance 

This is the coverage that protects your house itself against countless unexpected hazards like fires, vandalism and severe weather. So, if your house was to burn in a fire, this benefit will help you rebuild the home based on its replacement cost value. 

2. Other Structures Insurance 

Next you your dwelling, there might be other structures on the property, such as detached carports, storage sheds, pools, gazebos and fences. Your other structures coverage will help rebuild these structures in the event that they are damaged or destroyed. 

3. Possessions Insurance 

Belongings within your home might get damaged from a fire, severe storm or burst pipe, or someone might steal them in an act of theft. At this time, you might need to repair them or buy new items. This coverage will assist you in doing so, though most will compensate you based on an item’s cash value (used value) at the time the loss occurred. 

4. Liability Insurance 

Liability coverage does not help you replace a physical item. Rather, it accounts for the fact that you might be legally responsible for repaying someone who doesn’t live with you (a neighbor, friend, houseguest, etc.) when you negligently cause them harm. This coverage can not only compensate that third party for their losses, but will also cover any legal expenses you face due to a lawsuit. 

5. Living Expenses Insurance 

Following a problem within the home, you might be temporarily forced to move out. For example, if your roof sustains severe storm damage, you might have to live elsewhere until it can undergo repairs to make the home safe again. At this time, living expenses insurance can supplement the costs of hotels, dining bills or other expenses arising from this inconvenience. 

The most important thing to remember is that these standard coverage options can be tailored, enhanced and improved with the help of your agent. Therefore, you should only consider the fact that they are included on your policy as a starting point to get effective coverage.