Most basic house insurance products are made up of six types of coverage. They are dwelling, contents, loss of use, other structures, liability, and medical. Before you purchase a home insurance policy you should consider what each of these six options are and what it means for your entire policy including the premium. Coverage is meant to protect your possessions and housing structure. It is also meant to protect you against a personal injury lawsuit should someone get hurt on your property. Information regarding the six types of coverage is below.
Main House Coverage:
Dwelling coverage is meant to cover the main house should there be any loss or damage as a result of a number of issues such as fire. Vandalism, lightning, hail, and windstorms are all covered by the dwelling house insurance coverage. If you want to be covered for natural disasters like earthquakes, floods, or hurricanes you have to have a separate policy addendum for that. If anything happens that is covered in the main policy, the insurance company will help to repair or replace your home.
Other Structures:
Some homeowners have separate garages or storage facilities on their property. If you have any additional structures on your property that you want covered your house insurance will cover it. Typically, the insurance will cover ten percent of the property, though you can purchase more if it is necessary.
Loss of Use:
In the event your home is not habitable due to damage, your house insurance can cover you for a time until the house is repaired or rebuilt. For example food and lodging will be paid for a short period of time. It may also cover rent, hotel bills, restaurant bills, and other fees related to being out of your home.
Personal Property:
Every house has contents like furniture, computers, televisions, jewelry, and much more. All house insurance policies will cover certain personal belongings that are kept in the home. There is usually a certain level of protection for these items and you can select the amount of coverage based on the value of the belongings. You may have to pay a deductible before any payout for lost or damaged items.
Some of the items you have in your home may not be covered under the policy. It is important that you read the terms and conditions of any policy you are considering to ensure all property that is important is covered by it.
Personal Liability:
Accidents happen on property which can lead to injury and even personal injury lawsuits. In the event someone is hurt while on your property you will have coverage through your house insurance. It can cover family pets in the event your pet bites another person. It is up to the policy holder to determine the appropriate coverage for this section.
Medical Payments:
This is directly related to personal liability protection. It exists in the event you need to pay for someone’s injury that occurred on your property.
The above are the six options that are covered with house insurance and should be in your check list when comparing home insurance policies.