Purchasing a homeowners insurance policy is like making an investment in your future. Backed by the financial strength of your insurance company, you know that buying a policy can help you recover from a loss, such as damage to your home or the theft of personal property. However, many people do not know exactly what is covered in their home insurance policy — which means they are exposing themselves to risks. When you understand the coverage you have, you can easily make preparations for gaps or add additional coverage to enhance your existing protection.
Protection for Your Home’s Structure
Generally, people do not give much thought to the walls of their homes. Combined, the walls, roof and foundation provide you protection during storms and winter weather. Damage to any aspect of your home’s structure can undermine the integrity of the home. Fortunately, dwelling coverage—a component of your home insurance policy—may cover damage you incur to your home. Typically, standard dwelling coverage also covers electrical wiring and plumbing.
Securing Your Personal Property
In addition to covering the physical structure of your home, homeowners insurance also helps you secure the property you have in your home. From furniture to appliances, if you experience a loss as a result of a qualifying event, your insurance company may help you cover either the cost of the repair or the replacement costs. Personal belongings can include:
Some items may require additional insurance coverage to ensure you have adequate protection.
Safeguard Other Structures
Garages and carports are both structures that protect valuable personal belongings. Fortunately, home insurance may help you cover the costs of replacing or repairing them if the structures are damaged by something covered in your insurance policy.
With the right homeowners insurance policy, you can rest assured knowing that you will have protection in the future when you need it. Your insurance company may provide you with the financial support you need if you experience damage from an event specified on your policy. However, the best way to know whether you have enough insurance and the appropriate coverage is by understanding what is covered in the basic home insurance policy.