Most homeowners have an insurance policy, whether by their own choice or because it is mandated by their mortgage company. At the most basic level, a homeowners insurance policy provides financial protection should there be an accident or natural disaster involving your home. Your homeowners’ insurance policy will detail the specific risks or actions that are covered, including things like storms, fires, or theft.
What are the Different Types of Coverage?
The coverage offered may vary from one homeowners insurance policy to the next. With that said, coverage types typically include the following:
- Coverage A: Structure (your house, condo, or townhome)
- Coverage B: Other Structures (fences, gazebos, barns, or other structures on your property)
- Coverage C: Personal Property (the items you keep in your home, and sometimes items kept in off-site storage facilities)
- Coverage D: Loss of Use (coverage for any additional living expenses that you incur; for example, hotel costs if your home becomes flooded and uninhabitable)
- Coverage E: Personal Liability
- Coverage F: Medical Payments to Others
Coverages A through D can be characterized as property coverage, while the final two types of coverage fall under the category of liability.
What is Property Coverage?
Property coverage helps protect you against any damage to your dwelling space, along with personal property that you and your loved ones own. The extent of property coverage may vary but often encompasses the property owned by your dependent children, even while they are away at college.
It’s important to note that homeowners’ insurance policies typically have special limits on coverage for certain types of personal property. Some of the most common coverage limits include jewelry, furs, electronics, and antiques. In other words, your policy might only cover jewelry up to a certain dollar amount. If you have a lot of expensive jewelry in your home, then you may wish to purchase additional coverage, something that most insurers will offer.
What is Loss of Use Coverage?
Loss of use coverage will cover expenses that arise should your dwelling become uninhabitable, or should it require extensive repairs that force you to live elsewhere for a little while.
Usually, loss of use coverage will encompass temporary housing, relocation costs, storage of your personal property, and additional costs for food. The latter is usually determined as your cost of eating out, minus your family’s typical food/grocery expense.
As with any type of coverage, you’ll want to review your policy for specific coverage limitations.
What is Personal Liability Coverage?
Finally, most homeowners’ insurance policies will include personal liability coverage, protecting you and your family members against personal injury claims that other people may bring against you in the event they are injured while at your home. This usually involves claims for injuries sustained while on the premises of your home or anywhere at the real property insured by your homeowners’ insurance policy. Note that auto accident injuries are not included under homeowners’ policies.
Questions About Coverage?
It’s crucial for homeowners to understand the ins and outs of their insurance policy, including what’s covered and what’s not. If you have questions about your coverage, or about filing a claim with your insurance company, we welcome you to contact us. Reach out to McLaurin Law Firm in Houston, TX at your convenience.