Your house is one of your most important investments, so be sure to protect it with homeowners insurance policy. Homeowners insurance policies provide broad coverage for losses to your home, your personal belongings and also for detached structures on your property. It also provides protection in the event of an injury to people on your property.
Your home should be insured for an amount based on replacement cost value of your dwelling. Replacement cost is what it would cost today to rebuild your house in the event of a loss and based on current building codes. There usually is a deductible, which is an amount you would be responsible for before the policy starts to pay out.
Other Structures coverage can pay for covered damages to detached structures like garages, sheds and fences on your property.
Personal property coverage can pay you for the personal items in your home that may be damaged or destroyed by a covered cause of loss, which could include your furniture, clothes, sporting goods and electronics. Special limits of liability may apply to certain items.
LOSS OF USE
Loss of use coverage can pay your additional living expenses if you must move out of your home temporarily while it’s being restored. This is subject to coverage terms and limits.
Liability coverage can help protect you in the event of a claim and can provide a defense in the event of a lawsuit if you or a member of your household is responsible for causing bodily injury or property damage to others.
OTHER OPTIONAL HOMEOWNERS COVERAGES
SPECIAL PERSONAL PROPERTY COVERAGE
This special coverage for personal property or contents can provide broader protection for your possessions in the event of a covered loss. It can cover your personal property in more situations than a homeowners policy.
CONTENTS REPLACEMENT COST
Personal property replacement cost loss settlement coverage provides for settlement of covered personal property losses based on replacement cost at the time of loss, with no deductions for depreciation. The coverage is subject to applicable policy limits and deductibles and special limits apply to certain items such as jewelry, watches and furs.
PERSONAL ARTICLES FLOATER
A personal articles floater is a separate valuable items policy that is available should you need coverage or higher amounts of coverage for specific valuable items.
WATER BACKUP AND SUMP PUMP DISCHARGE OR OVERFLOW
If water backs up from a sewer or drain within your home, or if water discharges or overflow from your sump pump, this coverage can help cover the loss up to a specified dollar amount. This does not include coverage for flood or surface water back up.
Identity fraud expense reimbursement coverage can provide up to $25,000 that can help cover expenses to restore your identity if it’s used fraudulently.