Finance

What Does a Homeowners Insurance Cover?

Are you looking to get homeowners insurance? Here are the things the insurance covers.

Shelter is one of man’s primordial needs but getting a comfortable home for your family costs a lot. Think about the money that goes into the furniture and the home appliances. This makes the home an asset, and assets require insurance. Check out reviews of insurance companies on reviewsbird.com.

Homeowners’ insurance offers a financial cushion when disaster strikes. The law doesn’t demand that one gets homeowners’ insurance, but the benefits are already well-established. Restoring your home to its original condition can leave a big dent in your account.

This article will look at the things that homeowners insurance covers.

 1. Dwelling

Dwelling includes walls, floors, windows, roofs, built-in appliances like furnaces, structures attached to the house, and the overall structure of your home. Any disaster — unless specifically excluded — those damages any of the listed structures comes under Dwelling coverage.

Now you would have a portion of the repair fee. This fee is called the deductible. Your insurance company will then handle the rest up to the Dwelling limit.

 2. Other Structures

Like the Dwelling bit, Other Structures cover structural damage. However, Other Structures are structures that are not attached to the house. Examples of such structures are garages and fences. Like the first, your insurance company finances a percentage of the repair, and you do your bit (deductible).

 3. Personal Property

As its name suggests, this insurance handles issues regarding personal belongings — which is anything you own that’s not structurally attached to the house like clothes, appliances, and vehicles. The item doesn’t even need to be in the insured home at the time of damage. Interestingly, sometimes two types of coverage can intersect. If a burglar breaks in through the window to steal a TV, the Dwelling insurance covers the shattered window, and Personal Property insurance covers the TV.

 4. Loss of Use

If a disaster occurs in the house that makes it temporarily uninhabitable, your insurance company will pay to provide accommodation while they restore the house to its original condition. Depending on the damage, your insurance company may move you to a hotel to spend a few nights or to a similar home while they fix the house.

 5. Liability

This insurance provides financial assistance when a person sues you (or a member of your home) for injuring them accidentally. The insurance will not cover any bodily harm or destruction of properties done on purpose. The insurance covers fees for the lawsuit.

6. Medical Payments

This is similar to liability coverage. It covers payments for treatments of a person you accidentally injured on or off your property. The difference is liability coverage is strictly for accidents that involve a lawsuit.

These are the cases covered by homeowners’ insurance. Every insurance company also has its policies, so familiarize yourself with them before signing up.