Home & Structures
Coverage for the structure of your home and other structures.
This part of your policy pays to repair or rebuild your home if it is damaged or destroyed by fire, hurricane, hail, lightning or other losses listed in your policy. When purchasing coverage for the structure of your home, it's important to buy enough coverage to rebuild your home, should that be necessary.
Coverage for your personal belongings.
Your furniture, clothes, sports equipment and other personal items are considered personal property and are covered if they are stolen or destroyed by fire, hurricane or other insured disaster. Most companies provide coverage for about 50% to 70% of the amount of insurance you have on the structure of your home. This coverages includes off premises possessions coverage. This means that your belongings are covered anywhere in the world, unless you have chosen not to purchase off premises coverage. In addition, you may have up to $2,500 of coverage for unauthorized use of your credit cards. Valuable items such as jewelry, furs, silverware and guns are covered, but there are usually dollar limits if they are stolen. Trees, plants and shrubs are also covered under standard homeowners insurance policies. Generally, you are covered for 5% of the insurance on the house, up to about $500, per item. Perils covered are theft, fire, lightning, explosion, vandalism, riot and even falling aircraft. Trees, plants and shrubs are not covered by damage from wind or disease.
Additional living expenses in the event you are temporarily unable to live in your home because of a fire or other insured loss.
This coverage pays the additional costs of living away from home when you cannot live in your home due to damage from a fire, storm or other insured peril. It covers hotel bills and other living expenses incurred while your home is being rebuilt. Many policies provide coverage for about 20% of the insurance on your house. You can increase this coverage, however, for an additional premium. If you rent out a portion of your house, additional living expenses coverage also reimburses you for the rent you would have collected from your tenant if your house had not been damaged or destroyed.
Liability protection covers you against claims or lawsuits for bodily injury or property damage that you or family members cause to other people.
It also pays for damage caused by your pets. Therefore, if your son, daughter or dog accidentally ruins your neighbor's valuable rug, you are covered. However, if they destroy your rug, your liability coverage does not provide compensation. Your policy also provides medical coverage. In the event a friend or neighbor is injured in your home, he or she can simply submit medical bills to your insurance company. Expenses are paid without the injured party filing a liability claim against you. Medical coverage generally ranges between $1,000 to $5,000. It does not, however, pay the medical bills for your family or pet. Liability coverage pays for both the cost of defending you in court and court awards - up to the limit of your policy. This coverage applies anywhere in the world. Liability limits typically start at about $100,000. However, some experts recommend you purchase at least $300,000 worth of protection for added coverage and security. You can also purchase an umbrella or excess liability policy to provide broader coverage, including claims against you for libel and slander, and higher liability protection.