A homeowners insurance policy is designed to protect you, your home, and your personal belongings from damages and losses. The policy foots the cost of repair or replacement of your damaged home and personal belongings. However, for these damages or losses to be considered eligible for coverage, they must be caused by specific incidents such as fire, lightning, theft, or vandalism.
The majority of homeowners insurance policies offer four types of coverages. These are as follows:
1. Coverage for your home’s structure
If your home is damaged or destroyed by fire, lightning, windstorm, or other named perils, a homeowners insurance policy will pay for the ensuing repair/reconstruction expenses. Apart from the main housing structure, this policy also covers detached structures, like the garage, toolshed, and gazebos. It is important to note that a typical home insurance policy will not cover damages caused by certain natural disasters. Examples of these include earthquakes and floods. However, you can purchase an additional policy to cover these perils.
2.Coverage for your personal belongings
If your personal belongings like furniture and clothing are stolen or damaged by any of the perils listed in your policy, your homeowners insurance will cover the repair or replacement of such items. In addition, this coverage extends to items that are off-premises (that are not in your home ) as long as they belong to you.
However, expensive items like jewelry, art, and silverware have limits on how much of the insurance can be used to repair or replace them. Fortunately, you can purchase a floater or personal property endorsement to expand your existing coverage and protect such valuable items.
3. Liability coverage
This insurance coverage protects you and your family against lawsuits filed by a third party for bodily injuries or property damaged sustained by them. In addition, this policy also covers damages caused by your pets. For instance, if your dog ruins your neighbor’s garden, your liability coverage will pay for the damages.
4.Coverage for additional living expenses
If you can’t live in your home due to damages caused by named perils, your insurance coverage will take care of all additional living expenses that are incurred while you live in a hotel or other temporary accommodation during the time that your house is being rebuilt/repaired. These include restaurant meals, hotel bills, conveyance expenses, and others. However, this coverage has limits. For instance, some insurance companies impose a time limit on how long they will cover your additional living expenses.
These are the four types of coverages offered by a standard home insurance policy. For an affordable and adequate home insurance policy in Texas, contact the experts at Advanced Insurance Group today. We are ready to help you with all your coverage needs.