Homeowners insurance is perhaps the most important purchase you will ever make in association with your home. While you should hope that you will never have to use it, you want to make sure that it will cover all of the necessary items to make sure that your home will have the protection it needs when you need it.
Liability Coverage
Liability insurance helps protect the owner and the family from financial disaster if someone files a claim against the homeowner's policy, sues the homeowner or if the courts hold the homeowner legally responsible for someone else's injury or property damage.
The standard liability limit for most policies is $100,000, but many people believe that additional protection is needed, especially if the homeowner has sizable assets. For a small increase in premium, an additional $300,000 to $500,000 may be obtained. Liability coverage protects in three ways: Personal liability, damage to the property of others, and medical expenses for injury to others.
Theft Off Premises
This type of insurance is important because it means your property will be protected even if it is not at the home when the theft occurs. For instance, you’ll still have coverage if your car is broken into at the park or the airport or while you’re at work.
Additional Living Expenses
This type of policy allows for coverage for living expenses if the covered premises are damaged to the point of being uninhabitable. Not only should the policy pay for the cost to repair the damage to the dwelling, but it should also reimburse the homeowner for the additional expenses of living elsewhere until the repairs are completed.
Understand Your Policy
Not sure what is or is not covered on your policy? Not sure how to find out? Read the policy carefully. It's not likely to be fun reading, but the good news is that if one reads and understands his or her policy before it is needed, this knowledge may save unexpected financial losses should a problem occur. It is always best to talk with one's insurance agent or the company that issued the policy for details. Understanding your home owners insurance policy is best handled before a claim is made, so really look into your policy before and after you buy so you know what is covered.