Your mortgage lender may require you to obtain a homeowners policy–but it’s up to you to make sure you get the most out of it!
The first step is understanding what exactly it covers—and what it doesn’t.
Every homeowners policy is unique. It would be wise to contact your insurance agent to make sure you understand the particulars of your own policy.
That being said, most homeowners policies have several things in common.
What the Typical Homeowners Policy Covers
- Damage that occurs to your house due to covered losses. Review your own policy to ensure you understand what your covered losses are. A homeowners policy typically does not cover damage due to flood or earthquake are typically, but does typically cover damage due to fire. The policy will help you repair or rebuild your home and attached structures (such as a garage) damaged by these covered losses.
- Damage that occurs to other structures due to covered losses. Your policy may cover damage due to fences, detached garages, or other structures .
- Your personal property, when damaged or stolen. If your jewelry, furniture, appliances, or other valuables are damaged or stolen, your policy will help you replace those items up to the dollar limit defined by your policy. But your valuables may be worth more than your policy covers. You may need to purchase additional insurance coverage to sufficiently protect them.
- Living expenses due to loss of use of your home (if so damaged that it is uninhabitable).
- Your own liability (or the liability of family living in the same house) for damage to other people’s property for which you are responsible. This may include legal costs and liability judgments resulting from a lawsuit. Remember that we live in a litigious society, and the liability coverage included in your homeowners policy may not be sufficient to protect your assets. That’s where an umbrella policy can be a lifesaver.
- Medical payments to others for bodily injuries that occur on your property. This may also help with costs of a lawsuit or legal decision.
What the Typical Homeowners Policy Doesn’t Cover
- Damage or repairs costing less than your deductible.
- Costs that exceed the coverage limits defined by your policy.
- Routine maintenance and repairs.
- Damage due to losses that are not covered. In addition to flood and earthquake, this may include damage due to sinkholes, sewer backups, termites, and animals.
For more than 35 years, Insurance Partners, Inc., has been providing quality protection for individuals, families, and businesses, helping people make sense of their insurance needs so they can look forward to a brighter, more secure future. If you have questions about your insurance coverage, contact us