What does homeowners insurance cover?

Every homeowner should realize the importance of homeowner’s insurance policy. Homeowners insurance policy not only protects the homeowners from man-made and natural disasters, but it also protects you from several other situations.

The basic homeowners insurance policy pays you in case of any damage due to fire, severe storms, tornados and hurricanes. Damage to your property, possessions and home are primary elements to be covered. Coverage provided by the policy is not the most important aspect; the most important aspect is the amount they provide in case of any disaster.

Lost of possessions like furniture, electrical appliances, jewelry, clothing are also generally covered by some of homeowners insurance policies, up to a specific percentage of the policy.

Liability coverage protects you in case you are responsible for someone else’s injury or property damage. In such cases home owners insurance will soon provide you minimum 18,000 USD as coverage. Policyholder can buy an extra premium of $1.5 million. Liability coverage also covers certain injuries that happen within the premises of your home such as your dog biting someone. A sum of $700 is paid to the insurer with basic homeowners policy; this can increase up to $5,000 after paying extra.

Dwelling coverage will pay you in case of damage to your outstanding building (garage, storage, shed, fencing, boundary) and your home.

Loss of use coverage will help you in case if your home is damaged due to fire, storm or any other man made or natural calamity. Loss of use coverage will pay your expenses when your home is not suitable to live.

You must think over all the issues before purchasing a homeowners insurance. Consider the reputation of the insurance company and do not make decisions solely based on premiums of policy. Using Internet, you can find reputed home insurance company with best homeowners insurance rate. With a bit of research work you can get the best deal.

By Oliver Turner
Published: 8/2/2006