This is What a Homeowner’s Insurance Policy should Cover

Either you're looking at modifying your current plan or interested in finding coverage for the first time. Whatever the case, you would like to know what a standard homeowner's policy should cover. The four items that are generally covered in a home insurance policy include: the structure of your home, your personal belongings, liability protection, and additional living expenses if you are unable to live in your home because of a disaster.

1. The home structure

Your homeowner's policy pays to fix or rebuild your home if it is damaged or destroyed by hail, hurricane, fire, lightning or other disasters listed in your personal homeowner's policy.

2. The contents of your home

These are usually covered in a standard homeowner's insurance policy. Contents or belongings include your clothes, furniture, and other personal items that may be stolen or destroyed by insured disasters. Expensive items such as collectibles, furs, silverware, jewelry, and art are covered, but there are usually limits on the dollar amount if they are stolen. These types of items will require a separate addition to your policy in order to be covered. The contents are usually covered for 50-70% of the amount for which you originally insured the structure. For example, if you lose the home and its contents, the home will be paid for at its current value and the contents will be reimbursed at $75,000 out of $150,00 (cost of home) or $100,000 out of $200,000.

3. Liability protection

Liability coverage is normally included in homeowner's insurance. If damage or an injury occurs inside or outside of your home, the victim can find compensation through your policy. This coverage also usually pays for damages caused by your pets.

4. Additional living expenses

This part of your coverage pays any additional costs of living somewhere other than your home if you cannot live there due to damage from a disaster that is insured . It covers meals, hotel bills, and other costs, incurred while your home is being rebuilt that are over and above your usual living expenses.

Home insurance contracts can vary greatly. Make sure you're informed about best practices before you invest in your homeowner's insurance policy.