Understanding Homeowners Insurance

Home insurance provides coverage for both property damage and liability for injuries happening in your home. For instance, when your visitor slips on your kitchen floor, your policy will shoulder treatment expenses.

If you have a standard homeowners’ policy, it should include the following components.​​

Home Structure Coverage

This type of coverage pays for the repair or rebuilding of a home that is destroyed by hail, fire, lightning, and other covered disasters. However, note that it doesn’t cover earthquake, flood, or routine wear-and-tear. Some standard policies may cover detached structures of a house like a garage, gazebo, or tool shed.

Contents Coverage

Contents coverage offers protection for your personal belongings. It also covers trees, shrubs, and plants. It generally covers up to $500 per item depending on your policy.

Liability Insurance Coverage

Liability insurance coverage provides legal protection against lawsuits due to injury or property damage caused by the policyholder to other people. Aside from that, it also helps pay for the injury and damage resulting from the pets covered under the policy. Bear in mind that certain types of pets may not be covered.

A standard home policy usually covers the first $100,000. But if you think you need extra protection, you might want to consider getting umbrella coverage. Umbrella coverage will increase the monetary limits provided by your policy.

Coverage for Alternative Living Expenses

If your home becomes inhabitable due to a covered damage, your standard home insurance policy will cover the costs of living away from your home. It will cover your meals, hotel bills, and other alternative living expenses. Note that this coverage will vary from one insurer to another. Thus, it’s important to know how much coverage you really have.

Keep in mind that there are covered events that are best left unclaimed. Homeowners who usually file multiple claims in a short span of time may be at risk of losing their policy altogether.

If you’re confused about your policy, don’t hesitate to talk to your agent. He or she will be able to help you understand your coverage and help you when you need to file a claim.

At Jim Horne Insurance Agency, we are dedicated to helping you protect your investments. We offer home insurance products that you can customize according to your unique needs. Get a free quote from us now and talk to one of our agents. Don’t hesitate to call us at (334) 244-0600 or visit us today.