What Types of Damage Does Home Insurance Cover?

This is a great article I just found on exactly what the title says it is, what types of damage does homeowners insurance   cover? I found it to be especially well written, and I really couldn’t be bothered to re-write it. So read away, the link at the bottom of the posting goes back to the original author, so I’m sure he won’t mind I share it with you here. I hope it answers all of your questions.

insurance tequestaWhile every home needs to have at least the basic amount of home insurance
coverage, you may need more depending on your home, property or
lifestyle. To be able to make the right decisions regarding how much
coverage you need, it’s important to know what kind of damage you are
already covered for. The following is a list of the most basic types of
home insurance coverage that are offered in standard policies.

 

Dwelling Coverage

The most obvious form of home insurance coverage is for the dwelling
itself. Insurance will cover the cost of rebuilding or repairing your
home in the event that it is damaged or lost due to wind, hail,
lightening or fire. Depending on the insurance policy, you may not be
covered for damages that come from earthquakes or floods, so you may
need to have it added if it’s relevant to you.

Coverage for Other Structures

Detached garages, granny flats, sheds and fences
are typically covered under most standard home insurance policies
should they be damaged and need repair. You need to check with your
policy to find out how much is actually covered, because the typical
coverage for these other structures is generally only around 10 per cent
of your dwelling coverage.

Personal Contents Coverage

Most home insurance policies will cover the cost of replacing your
possessions if they should be lost or damaged during a natural disaster
or if they are stolen. Typically, 50-70 per cent of your dwelling
coverage will be provided for damaged personal belongings, but you can
always choose to add more coverage depending on their value.

Loss of Use Coverage

Included with your home insurance policy should also be Loss of Use
coverage. This protects you if you home is destroyed or damaged and you
and your family need to live elsewhere during repairs. In general, you
will get reimbursed for a hotel, restaurant and any other expenses that
result from your home being uninhabitable.

Personal Liability Coverage

Personal Liability coverage comes as part of the standard home
insurance package and protects you and your family members against
lawsuits. For example, if you dog bites someone or your mail carrier
trips on a loose step and hurts themselves, then you will be protected
if they sue you for damages. There are many reasons why you may want to
get more coverage, however, such as if you have a back yard swimming
pool.

Medical Payment Coverage

This section of a standard home insurance policy will help to cover
medical costs if someone should be injured on your property and they
don’t want to sue. For example if the mail carrier trips on your loose
step and injures themselves and don’t sue, then you can help cover their medical costs through your home insurance policy.

Some Things That Aren’t Covered

While it’s important to know what is covered in your insurance policy, it’s also important to know what isn’t.
Most basic plans don’t cover earthquake losses, mould removal, flood
destruction, pest infestation or destruction caused by a pet. Remember
that home insurance policies are generally quite flexible, and you can
always add additional coverage where you think you might need it.

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