Common Homeowner Insurance Coverages

There are so many moving parts to a homeowner policy! As a homeowner, you want to make sure you have the best coverage to protect the home you work so hard for. Homeowner insurance policies differ by which losses are covered, which coverages you choose, and what type of residence you own. Your insurance agent should take care of everything for you, but just in case, we put together the most common homeowner insurance coverages you can find on a policy.

7 Common Homeowner Insurance Coverages

Dwelling

This is the portion of your policy that covers the actual structure (main house). The cost to replace your home can fluctuate from time to time based on the cost of raw material and labor, and of course, supply and demand. Something our agency does is run a replacement cost analysis on your home to see how much it would actually cost if the worst happened and you had to rebuild.

Other Structures

This covers any structure on your property that is not permanently attached to your house. For example, fencing, driveways, sidewalks, and detached buildings like sheds, and garages. Usually, this coverage is 10% of whatever your Dwelling limit is, but can be increased if you need more coverage.

Personal Property

When it comes to your personal belongings like clothing, furniture, electronics, and appliances, personal property coverage kicks in. Basically, anything that would fall out of your house if you turned it upside down and shook out the contents.

Loss of Use

This covers your living expenses if you need to live somewhere else temporarily because your primary home is uninhabitable due to a loss. For example, let’s say you lost your house due to a fire. Loss of Use coverage would be used for hotel expenses up to your coverage limits.

Medical Expense

This covers medical expenses for guests if they are injured on your property, and in certain cases covers people who are injured off of your property. It does not cover health care costs for you or other members of your household.

Family/Personal Liability

Personal Liability Coverage applies if someone is injured or their property is damaged and you are to blame. The coverage generally applies anywhere in the world. When choosing your liability coverage limits, consider things like how much money you make and the assets you own. Your personal liability coverage should be high enough to protect your assets if you are sued. In some situations, an Umbrella policy may be necessary to provide extra coverage.

Scheduled Personal Property

There are some situations where you might want special coverage for valuables, or collectibles like jewelry, guns, collectibles, rugs, etc. For example, let’s say you have an engagement/wedding ring. You should tell your insurance agent about it or the agent should ask about it. You can get the ring appraised and it can be covered under your homeowner’s policy.

Recap on homeowner insurance coverages

When it comes to the different homeowner insurance coverages, there is a lot to think about! Make sure you work with an experienced agent that cares about you to make sure you have the proper coverage for your home & lifestyle. If you ever have questions about homeowner insurance coverages or anything about your policy, emails us at team@thamsagency.com.