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3 things your home insurance policy should cover

On Behalf of | Mar 6, 2024 | Homeowner's Insurance Matters |

When it comes to safeguarding one of your most significant investments, your home, having the right insurance policy is crucial. Your home is more than just bricks and mortar; it’s a haven, a sanctuary and a representation of your dreams and aspirations. Protecting this valuable asset with the right homeowner’s insurance policy is crucial.

Home insurance can provide financial security and a recovery plan in the event of unexpected disasters or accidents. However, it’s crucial to acknowledge that not all insurance policies are created equal. Understanding what your policy should include can help you to better ensure that you have the kinds of coverage you need.

Dwelling coverage

This is the foundation of your policy, covering the structure of your home, including walls, roof and attached structures like garages. It can safeguard against a wide range of hazards, such as:

  • Fire
  • Lightning
  • Windstorm
  • Hail
  • Explosions

It’s vital to choose the correct coverage amount. Opting for actual cash value might leave you underinsured, as it considers depreciation when reimbursing you. On the other hand, you can consider guaranteed replacement cost coverage, which pays to rebuild your home, regardless of rising construction costs.

Personal property coverage

Imagine losing your belongings in a fire or theft. Personal property coverage safeguards your furniture, electronics, clothes and other valuables in such situations. This coverage typically extends to belongings stolen outside the home—but up to a certain limit.

Carefully evaluate the coverage amount based on the value of your possessions. It would help if you considered conducting a home inventory to assess the worth of your belongings more accurately. Remember, valuable items like jewelry or artwork might require additional coverage.

Liability coverage

Life is unpredictable. In an unfortunate event where someone gets injured at your home, liability coverage protects you from financial ruin. This coverage pays for legal defense and any settlements or judgments arising from such incidents.

The standard liability coverage offered might not be sufficient, particularly if you have a pool, trampoline or other potential hazards on your property. However, you can increase your liability limits to help ensure adequate protection.

Home insurance is an investment in your peace of mind and financial security. By confirming your policy covers essential elements, you can rest assured that your home and its contents are well-protected against unforeseen circumstances. Remember, if you have trouble with your insurance provider, working with a legal team can help address your specific needs.