Updated: Mar 19, 2019
If a disastrous event strikes your home and it leaves you practically nothing but the clothes you are wearing, what happens? You turn to your homeowner’s insurance and hope that they cover the damages and the costs of replacement. Insurance policies are complex and long. They are generally written in legal terms, which make it difficult to comprehend. But, understanding the jargon is extremely important, as your coverage could be all that you’ve got to help you stand up again and continue with life.
There are four types of coverage under the basic homeowner’s insurance policy. All this should be included in your own policy. Make sure to ask the insurance agent about these vital components.
Personal Belongings Coverage
In the wake of a catastrophe, a standard homeowner’s policy basically covers the damage in your house. This includes the clothes, furniture, valuables, and all the other contents in your home. It also covers plants, trees, and shrubs within your property. The coverage usually pays up to $500 for each item.
The purpose of liability protection generally pays for the property damage and injury you have cause to other individuals. A basic policy normally pays for the first $100,000. It also covers for the injury and damage that your pets caused. You may opt to buy umbrella coverage if you need more protection. In such case, the monetary limits increase.
Additional Living Expense:
When it is impossible for you to live in your house after a calamity, the additional living expenses cover the bills of living away from your house. It typically includes restaurant bills, hotel bills, and other bills related to living expenses. Find out now if how much coverage your policy really has, as this varies from insurer to insurer.
Home Structure Coverage:
This component is useful when you need to reconstruct your house or need to do some repairs. The policy lists the disaster that it can cover such as lightning, hail, and fire. Even those structures that are not attached to your house are also covered such as gazebo, tool shed, and garage. But, the home structure coverage does not include routine wear and tear, earthquake, and flood.
Analyze what kind of loss or damage you would file for a claim. A policyholder who makes several claims in a short time period has a high risk of losing the insurance plan. If it is a small loss, it is better to handle the matter yourself.
Make sure that you understand your policy’s fine print. You agent can answer any questions you have about it. At Vianca's Insurance & Financial Services, we put our clients first by offering them policies that they can afford. Learn more about our products and services by calling or sending a TEXT to our agency at (619) 799-9443.