Before buying a home insurance policy, it’s important to know the basics of home insurance coverage. The case is similar if you have an old policy, and you wish to update it. Homeowner’s insurance enables you to receive financial protection in case of any disaster involving your home.
Finding the right insurance can be difficult if you’re new to it. To help you out, here are coverages that a typical homeowner’s insurance policy includes:
- Contents Coverage
This type of coverage protects items in your home, including clothing and furniture. In case of an accident, you’d receive compensation for the value of the items as stated by your policy. It might provide coverage while you’re moving to a new place.
- Personal Liability
In case a claim is made against you for property or personal damage, this home insurance coverage protects you. It may also be of use to you if someone is injured on your property, and you have to pay their medical bills.
- Dwelling Insurance
Dwelling insurance covers your dwelling. It includes any structural component of your home. Understand the difference between actual cash value coverage and replacement cost coverage.
- Loss of Use Insurance
If you live in a disaster-prone area, this is the right home insurance coverage for you. It covers extra living costs that come due to you being unable to use your home. It includes restaurant costs if your kitchen is destroyed or hotels if your home is in bad shape.
