5 Things Your Homeowner's Insurance Covers

When you finance your home and get a loan through a mortgage lender, the lender will require you to carry homeowner's insurance. It is essential to know what your insurance covers to understand how you are protected and where you are vulnerable.

#1: Dwelling

First, your home is going to be covered by your policy. It will cover damage to your home, as well as any structures that are directly attached to your home, such as an attached porch. You want to have enough coverage so that if your home were totally destroyed, you would be able to rebuild it back to the current state that it is in, with the same materials.

#2: Other Structures

Your homeowner's insurance is also designed to cover other stand-alone structures on your property. For example, this includes things such as a fence on your property or a stand-alone shed. These structures are usually only covered as a small percentage of your dwelling coverage. You want to ensure that your dwelling coverage is extensive enough that your other structures are adequately covered.

#3: Personal Property

Third, your personal property is covered as a percentage of your dwelling coverage. Your coverage is designed to replace your belongings if they are damaged. You can choose the level of personal coverage that you get, and you can add extra riders for higher-value items.

#4: Living Expenses

If something happens to your home and it has to be repaired, you will need somewhere to live. That is where additional living expenses come into play. This coverage is designed to provide you with money to cover your living expenses when your home is being fixed up. It will cover the cost of a hotel or temporary home rental, as well as other expenses you incur while living away from home, such as transportation costs, food costs, and laundry costs.

#5: Liability

Finally, with homeowner's insurance, you are going to get liability coverage. That way, if someone is injured or if something is damaged on your property, regardless of cause, you will be covered if they pursue legal action against you, and the coverage will pay their medical bills.

It is essential to understand how the homeowner's coverage will work when it comes to owning a home. Your dwelling, other structures, additional living expenses, and liability are all covered with your policy. Contact a company that offers home insurance policies to learn more.