Homeowner's policy, also commonly known as hazard insurance or home insurance, is a type of property insurance that provides coverage to private homes. It combines many different personal insurance protections, including the losses occurring to your home and its contents, loss of your personal possessions due to the damage and loss of its use. It also includes liability insurance coverage for any accident that can occur at your home or by your hands within the policy territory.
A homeowner's policy is formulated to essentially protect you against certain perils, which is usually a deductible at the time of filing a home insurance claim. Exclusions and named perils in a policy determine the individual home insurance policies. It's recommended that you consult your insurance provider concerning any exceptions that may apply.
A typical homeowner's policy can be classified into two parts, namely Home Insurance Property Protection and Home Insurance Liability Protection. Understanding Home Insurance Property Protection: It is typically divided into the following four sections:
B. Other Structures
C. Personal Property
D. Loss of Use
Dwelling usually essentially provides coverage against any kind of damage caused to your house, fixtures such as plumbing, electrical wiring, built-in appliances and permanently installed air conditioning. Other structures compensates for the damage caused to detached structures, such as storage sheds, garages, driveways, patios, sidewalks, retaining walls and fences.
Personal property insurance policy, as the name suggests, covers personal property including all the contents of your home and other personal belongings of owned by you or your family members living with you. This protection can be based either on replacement cost or actual cash value of the belongings. Some items that can have coverage limit are artwork, jewelry, electronic data, artwork, firearms, business property and money.
Loss of use policy essentially covers your living expense that is over and above your regular living expenses if you're denied access to your home by government order or if you can't stay in you're home due to repair work.
In your homeowner's policy, you can also include Additional Property Coverage, wherein your insurance provider will pay for the cost of property renewal, theft, removal of debris along with shrubs and damaged trees, collapse of buildings and fire-department service charges.
Understanding Home Insurance Liability Protection: This homeowner's policy protects you and other covered family members against lawsuits. This insurance policy would protect you in case of any damage caused within your property. For example, if your pet bites your neighbour, this policy will compensate for the medical costs involved in the treatment of your neighbor. Now that you have a brief idea about homeowner's policy, choose the most appropriate insurance policy for yourself.