If you’ve got a house, you need to insure it. That’s a basic rule of homeownership. However, a home is much more than a roof over your head. It’s a place where you live, rest, and make memories. That’s why you need to fully understand the basics of homeowners insurance and get the right policy to suit your needs.
Fortunately, we’re here to help.
What does a homeowners insurance policy cover?
Every policy is different, but standard homeowners insurance coverage will protect your house and everything inside it. It will also most likely cover damage that happens to your property along with any liability for injuries a member of your household may cause to someone else.
What is liability protection?
This part of your homeowners insurance coverage involves any lawsuits that occur due to injuries or property damage you or your family may cause. It covers both litigation costs and court awards up to the limit of your policy.
It also includes medical payments coverage. So, if someone sustains an injury on your property, they can submit medical bills directly to your insurance carrier. Therefore, your insurance can pay the injured person directly without the hassle of a lawsuit.
What is property protection?
Property protection can be divided into four categories: dwelling, personal property, loss of use, and other structures.
Dwelling: This coverage involves the most basic function of your homeowners insurance—protection for the structure of your house in the event of perils. It includes damage due to covered losses such as fires and hailstorms. Your policy limit should include the cost of rebuilding and repairing your home, as well, but you don’t need to worry as much about the cost of your land.
Personal Property: This protects your possessions, such as clothing, furniture, and electronics. Of course, your policy will cover items inside your home, but it also extends to belongings you may own anywhere in the world. When buying or reviewing a policy, remember to itemize your belongings and accurately determine their value. We suggest you insure all personal property for their replacement cost value so you can replace old purchases at current prices.
Loss of Use: There may come a time when a covered loss (such as a fire or storm) forces you from your home. In that case, loss of use coverage will help pay for additional expenses you may encounter before you can return home.
Other Structures: This part of a policy will protect any detached buildings on your property, such as a garage or tool shed. It also covers structures attached to land, like your driveway, sidewalk, patio, or swimming pool.
What else should I know about homeowners insurance?
Not all disasters are covered by standard homeowners insurance. Floods, earthquakes, and other specific perils generally require additional coverage. That’s why you should always read your policy to make sure it suits your needs.
Also, if you leave your home vacant for any reason, talk to your MTG agent about coverage options. Vacant homes are more vulnerable to vandalism and other mishaps, so you need to make sure yours is fully protected.
If you have any other questions about homeowners insurance, contact your MTG agent for comprehensive answers.