As you grow older, you acquire knowledge about how the world works. Taxes, for example, are one such component of life that you will have to get accustomed to. Another element is insurance, the functions of which can apply to a multitude of areas. When you become a home owner, home insurance will inevitably pop up on your radar.
Home insurance coverage is important because your life consists of many important areas. From your career, to your loved ones, to your home, they all require equal consideration and protection. Getting familiar with the details of home insurance will provide you with some peace of mind. With the right type of home insurance coverage, you reduce the possibility of harm ever affect the standing of your household.
This type of insurance provides coverage on various areas pertaining to your home. Insurance companies will offer you many types of packages, in order to ensure that your property is fully protected. Although the details may be initially intimidating to gloss over, a little research into those policies never hurt. These are the principal areas covered by home insurance.
1. Home Building Protection
For starters, this is the central function of most home insurance policies. When you purchase this insurance product, the coverage you receive covers the actual structure of your property itself. The areas that constitute your dwelling range, but mostly involve your home’s foundation, the walls, and the roof.
Dwelling protection also extends to multiple other areas as well, depending on the product you have. Ancillary structures that support the foundations of your home, such as your garage, will qualify under your home insurance product policy. This type of insurance comes as described; it essentially provides protection for your residence!
2. Personal Property Insurance Coverage
Although home insurance is the basis of protection for your home, it can also extend to the contents within it. Since we can never truly predict how the outside world will work, you’ll want to ensure that all parts of your property are protected. Personal property coverage helps insure your belongings and possessions.
If you are the victim of a break-and-enter, for example, this would extend to your circumstances. If your electronics are damaged or go missing, you would be entitled to compensation under this coverage. Depending on the type you go with, you will receive either a replacement, or the actual cash value of the belonging.
3. Insurance for Other Structures
The great part about home insurance is that it covers multiple areas pertaining to your residence. This includes other structures that may be a part of your home, such as a detached garage. In the event of severe or inclement weather, these structures have the potential to be damaged.
Consequently, you’ll want to ensure that you are protected by the right home insurance product. Other items that fall under other structures coverage may include a fence, or an in-ground swimming pool. Be sure to contact a local agent for more information, should you require it.
4. Personal Liability
Personal liability insurance is generally regarded as a component of most home insurance products. No one likes to be considered as clumsy, but, sometimes, accidents may occur. In various instances, these unwarranted accidents may result in damage to your home in some fashion.
Of course, purposeful harmful actions done to your household are not covered. However, if you have a guest over, and they injure themselves and are unable to return to work, you will be held liable. Having personal liability coverage will protect you from paying out of pocket for those potential legal fees as a result.
5. Non-Owned Property Insurance
If there are other possessions that are present on your property that aren’t yours, it won’t fall under your usual home insurance policy. As such, non-owned property coverage grants you protection, in the event that these items become damaged. Even if these items are damaged purposefully, you will usually be protected.
Granted, there are some exceptions to be aware of. If these items are property of tenants who are not related to you, it will be excluded. That is why it is important to know the person who owns the items first, in order for this special type of home insurance product to apply.
6. Specified Perils Protection
For the most part, damage to your home caused by weather will fall under home insurance policies. However, if you live in an area that is more prone to special types of dangerous weather, this extension of home insurance may be required. For example, water damage can be extremely specific; a watermain may accidentally burst and cause harm.
Or, water may be created from a non-specified peril, and enter your dwelling before causing damage. That is why it is imperative to take into consideration your environment. Knowing how much it will affect your home, will allow you to decide if you require this type of coverage.