Homeowners Insurance Coverage Options

If you are a homeowner with a mortgage, your lender probably wants you to have some type of homeowner's insurance. As a renter, you can choose whether or not you want to purchase renter's insurance. Homeowner's and renter's insurance cover several different hazards in several areas of coverage. When you understand the areas that homeowner's insurance covers, you will be better able to make sure that you have the right amount of coverage.

Homeowner-Specific Coverage

A homeowner needs more types of coverage than a renter does. The most important type of insurance for many homeowners is dwelling coverage. If your house burns down or a tree falls on the roof, you'll be covered. Another kind of coverage that homeowner's need is insurance for other structures. If you have a garage, playhouse, or shed, you will be covered. The typical insurance policy does not cover floods or earthquakes. If you want protection against these hazards, you'll have to purchase it separately.

Personal Property Coverage

Both homeowners and renters will be happy that they have this type of coverage if disaster should strike. When theft, fire, or other kinds of loss happen to your property, this coverage will handle it. In some cases, you are limited to the amount of coverage that you get for certain items, like jewelry and art. If you have a lot of money invested in these items, contact your insurance company to make sure that those items are fully insured.

Loss Of Use

Loss of use coverage is important, especially if you are a homeowner. If your house catches on fire, you probably won't be able to live in it for a while. Loss of use coverage will help with all of the additional costs of not being able to use your home. Your mortgage lender is unlikely to give you a break on paying your mortgage, even if you have to pay rent at the same time. Loss of use coverage can cover hotel stays, kennel costs, and the cost of eating out.

Liability Coverage

In a time where lawsuits abound, having liability coverage as a part of your homeowner's policy can give you peace of mind. If a guest in your home is injured or suffers property damage, the liability coverage in your insurance policy will help you pay for your medical and legal costs. This liability coverage even includes situations like dog bites, or your child accidentally knocking a baseball through your neighbor's window.