Brief Guide to Homeowner’s Insurance

A comprehensive homeowners policy protects a home and belongings against covered damages and minimizes personal liability if someone is injured on the property. However, complex policy wording and unfamiliarity with the subject can create many grey areas. As a result, many homeowners wonder “What does homeowners insurance cover?”

The key to understanding homeowners insurance coverage is learning as much as possible about specific types of coverage, plus standard policy exclusions and limits.

What Does Homeowners Insurance Cover?

Each homeowner’s policy includes several types of coverage, which consumers should learn about before purchasing a policy. These are each subject to the following:

• Coverage limits
• Deductibles
• Exclusions

Dwelling and Additional Structures

Homeowners insurance coverage will generally protect all listed structures on a property. This includes the primary dwelling and other structures, such as sheds, guest houses, and detached garages. Coverage limits vary, and homeowners can choose from a set dollar amount or the actual replacement cost.

Personal Property

Personal belongings are listed as personal property on a homeowner’s insurance policy. This typically includes items such as clothing, electronics, jewelry, and furniture. However, purchasers must be aware of exclusions and limit when shopping for a policy. In most cases, coverage is limited to a percentage of the dwelling coverage.

Liability

Liability insurance is a significant component of any homeowner’s policy. It pays for medical and legal expenses and settlements if someone is injured on the insured property. This safeguards owners’ personal assets.

Loss of Use

This is an essential but often overlooked component of many homeowners’ policies. It covers the cost of temporary shelter if a covered home becomes uninhabitable. Loss-of-use limits are usually equal to a percentage of the policy’s primary dwelling coverage.

What Extra Coverages Are Available?

Each policy should be tailored to the unique need of the homeowner, many of whom find themselves needing additional specialty coverage. When asking, “What does homeowners insurance cover?” keep in mind that it is often possible to purchase special coverage for unique, high-value, and specialty items, such as:

• Guns
• Fine art
• Collectibles
• Jewelry
• Unique architectural features

Homeowners with these items should talk to an insurance agent to ensure proper coverage is in place to avoid a denied claim.

Are Any Damages Excluded?

It is common to find exclusions in homeowners insurance coverage. Unfortunately, many homeowners are caught unaware of exclusions in their policy when they file a claim. At that point, it is too late to correct the problem.

Carefully reading a policy and asking questions is the best way to avoid this situation. All exclusions should be identified when asking, “What does homeowners insurance cover?” Some common exclusions in homeowner’s policies include:

• Flooding and sewer backup
• Injuries resulting from an undeclared hazard (e.g., pools, trampolines, uncovered pets, etc.)
• Earthquake damage
• Pest infestations
• Power surges

Get Answers – and Coverage

It is common to wonder what your homeowners insurance covers when trying to find an appropriate and affordable policy. Unfortunately, misinformation abounds. For helpful answers and a clear path forward, talk with a knowledgeable [Company Name] agent today.

Sources: https://www.investopedia.com/insurance/homeowners-insurance-guide/https://content.naic.org/sites/default/files/publication-hoi-pp-consumer-homeowners.pdfhttps://flash.org/homeownersinsuranceguide/dear_homeowner.htmlhttps://www.usnews.com/insurance/homeowners-insurance/how-to-buy-homeowners-insurance

What Is Auto Insurance?

When you purchase or lease a vehicle, you must take the proper steps to secure your investment. Auto insurance is the primary way to ensure financial protection for your new purchase.

In most states, vehicle insurance is a requirement in the event of an accident. How much is enough? What are the available options? Let’s dive into some valuable information you’ll need to ensure you have the right coverage.

 

Understand Auto Insurance

What is auto insurance? Motor vehicle insurance is an agreement between you and your insurance company that provides financial protection if you are in an accident or suffer losses associated with your vehicle. It will protect you from the following:

• Vehicle damage
• Medical bills
• Property damage

In exchange for paying an insurance premium, your insurance company will compensate you for your expenses as defined in your policy. Generally, a policy lasts six months to one year and is renewable. Although basic auto insurance policies are mandatory in most states, you can get customizable coverage to suit your budget and any particular needs for your vehicle.

Know Automotive Insurance Definitions of Coverage

When determining insurance coverage, it is essential to be clear on the differences. This way, when discussing policies with your insurance agent, you will know which questions to ask to find what is right for you. Different coverages are required depending on which state you live in:

• Bodily injury liability covers the expense of injuries or death by you or another driver while driving your vehicle.
• Property damage liability reimburses other owners when you or another driver operating your automobile damages property such as a utility pole, fence or building.
• Personal injury protection covers expenses for medical injuries to you or your passengers; it will also provide coverage for lost wages and other costs that relate to an injury.
• Uninsured motorist protection covers costs that relate to an accident with a motorist who does not have insurance or is not available, such as in a hit-and-run. 

You can also purchase underinsured motorist insurance to add coverage for a driver who does not have adequate auto insurance when there is a severe accident.

Determine if You Need Other Types of Automobile Insurance

Most insurance policies cover the damage your vehicle causes but not other expenses. However, you can purchase a variety of add-ons:

• Collision will reimburse you for damage to your car when you are at fault with another vehicle or object, such as a guardrail or a tree.
• Comprehensive insurance provides damage coverage for incidents other than collisions, such as natural disasters like fire, flood, falling rocks and trees. It also protects against theft and vandalism.
• Glass coverage can save you when your windshield, side and rear windows, or sunroof is damaged.
• Gap insurance will cover you if you purchase or lease a new car that depreciates quickly. If something happens to your vehicle (e.g. it is stolen or totaled), there may be a “gap” in your insurance coverage. This coverage will pay the difference.

Choose the Best Auto Insurance

All types of insurance are essential for different reasons. The right auto insurance policy will cover all your needs and save you money. Call [CompanyName] today to get the best insurance rates available in your area.