Homeowner’s Insurance
A homeowner’s policy and variations thereof cover all types of dwellings. You can own a private home, own a condominium or a co-op, rent a house or apartment, or live in a mobile home. All of these different types of dwellings are covered by the specific policy designed for your home.
Coverage A of a homeowner’s policy provides reimbursement for damage or destruction of your residence assuming it was caused by perils specifically listed in your policy. You can request an endorsement that will include additional perils that could be likely to occur. Property damage is different for each type of dwelling and you should consult an insurance agent to be certain that you have the best coverage for your specific type of home. Coverage B insures detached structures on your property such as a garage or shed.
All properties listed have coverage for contents (Coverage C). It is always a good idea to have a record of all of the contents of your home and to keep it somewhere other than in your home, in case of fire or total loss. A videotape of your belongings is a very good thing to have. It is also worthwhile to keep receipts for home purchases in the event you have to prove the cost of an item. You might want to check with your insurance professional to determine if you have full replacement value coverage, or just a specific dollar amount. After all, you will probably want to replace all of the items you owned before the loss and only full replacement coverage will allow you to do this.
Coverage D is an option that provides for your living expenses in the event that you can no longer live in your home. When you are unable to continue to live in your home due to damage, expenses can be very high and this coverage will help you meet them. You will need to rent a hotel room, eat meals out in restaurants, etc.
All of the above policies provide some type of liability insurance ( Coverage E) should someone be hurt or injured on or off of your property. This portion of the policy will pay for bodily injury and property damage to others due to the insured’s negligence. It will cover medical expenses, court costs, etc. and can be applied to all sorts of unusual accidents that can occur in this world. It is a good idea to increase the amount of this coverage and consider setting it at a limit that will match the liability coverage you have on your other policies.
Coverage F – insuring guests’ medical bills is a “nice to have” coverage. It is generally limited to a small amount, such as $1,000 to $2,500, a good policy to have if a guest gets hurt on your premises through their own carelessness. If, of course, the injury were serious, then your liability coverage would take over and respond.