Your home is probably your most valuable investment. This is exactly why acquiring adequate protection for it is a necessity. You need to make sure that in case your home suddenly sustains damage, you are able to restore or rebuild it again. This is where home insurance comes into play.
Home insurance refers to a form of property insurance that covers a host of losses and damages sustained by your house. At the same time, it covers any liability or legal responsibility for property damage or injuries incurred from a home disaster.
If you are not sure what type of insurance you want to obtain for your house, consider starting out with standard home insurance. It actually includes a number of types of coverage that you may critically need:
Coverage for Structure of Your Home
This part of the insurance policy compensates for home rebuilds or repairs in case your house incurs damage from disasters such as hail, hurricane, fire and lightning. Depending on the policy itself, it can also cover the structures that are not attached to the house—e.g., tool sheds, gazebos, and garages.
Coverage for Personal Possessions
In case the house suffers significant damage as a result of an insured disaster or if a break-in occurs, standard home insurance can cover a number personal belongings. These include clothes, furniture, sports equipment, and similar personal items. Meanwhile, plants, shrubs, and trees are also covered, but with a set limit per item. In this vein, it helps to compose an inventory of your personal items so that damage assessments can be performed more easily. This is actually a common practice in the U.S. In fact, as many as 52 percent of homeowners in America say they keep an inventory.
Liability protection covers lawsuits and other legal actions against the homeowner for bodily injury or property damage related to the household. For example, it covers the homeowner if his or her pet damages a neighbor’s property.
Additional Living Expenses
This type of coverage pays for the additional cost of living away from home in case the house sustains major damage. For example, it would cover hotel accommodations, restaurant meals, and similar living expenses while the house is being restored.
These coverages help tremendously should anything unfortunate happen to your home. Weigh these coverages against others and determine if a standard home insurance suffices for you and your family. At least, it affords you the peace of mind to know that if your home suffers a catastrophe that drives you out of it, you are covered.
How Much Coverage Do You Need?, insureuonline.org
Homeowners and Renters Insurance, iii.org
Homeowners Insurance Basics, iii.org