Homeowners insurance is a must for anyone who owns a home. This insurance is the best way to protect your investment. It provides coverage for damage to your home, land and personal belongings. Liability coverage is an option as well to help out when someone is injured on your property.
Types of Incidents Covered by Homeowners Insurance
This insurance typically covers damage caused by things such as fire, wind and lightning. If you have a mortgage, your lender might require you to purchase home insurance. And keep in mind that flood and earthquake insurance are not a part of homeowner coverage. Those are excluded from your policy unless you specifically purchase them.
Dwelling coverage simply means the insurance company will pay to repair or rebuild your home if it’s damaged or destroyed. As long as the destruction is caused by a covered mishap, then insurance will do its part.
Loss of Use
If your home becomes uninhabitable, then loss of use coverage provides an allowance for reasonable housing and living expenses. This is a temporary situation until your home is repaired or you find a new residence. Loss of use coverage contributes to these expenses, and might or might not cover the total expense.
Your personal belongings will be covered as well should they be damaged or stolen. The damage must be the result of a covered event, such as fire. These items include things such as furniture, clothes, appliances and electronics. Extra valuable items might require additional coverage.