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Posted in: Buying a home, Homeowner tips

What does homeowners insurance usually cover?

What is homeowners insurance

As buying a home is such a large financial investment, homeowners should take precautions when it comes to protecting their property. Below, we’ll outline the basic coverage areas of a standard homeowners insurance policy.

One essential aspect of homeowners insurance includes coverage for the structure of your house. Perils such as fire, tornado and hail are usually covered, which means that your insurance company will either pay for the property to be repaired or rebuilt depending on the damage. Some incidents, including flooding and earthquakes, may not be covered by a standard policy, but additional home insurance policies can be purchased. If you have additional structures on your property, like a second guest house or a detached garage, you may need to inquire about extra coverage.

Even a minimal home insurance policy often provides protection for your personal belongings, though the dollar amount can vary. If you have expensive items, you may need to up the coverage amount. Most insurance providers offer coverage for 50 to 70 percent of the amount of structure insurance when protecting belongings. To guarantee you have an adequate plan for your items, create a home inventory and keep receipts documenting the cost of items upon purchase.

Liability protection is also included in basic home insurance plans, though you may need additional coverage if you have pets or risky features such as a swimming pool or trampoline. Liability coverage pays for court fees as well as bodily injury or property damage that anyone insured causes to others. This includes accidents or incidents that occur on your own property.

If you're considering purchasing homeowners insurance, or have other questions about how to best protect your home from hazard and theft, reach out to an Edina Realty Insurance expert today.

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