Home Owners Insurance
Home Owners Insurance.
Homeowners policies have differing provisions, though they
generally provide two types of coverage: Property and
Liability.
Property coverage pays for:
■ Damages to your home
■ Damages to other structures on your property
as well as damages to
your personal property
Liability coverage offers protection, including the cost of
legal representation, from covered claims made against you
or a resident family member for property damage or bodily
injury. This section of your Homeowner's coverage is broken
into two parts:
Personal Liability coverage: Pays up to
your limit of liability when you or a resident family
member is found legally responsible for damage to the
property of others or injuries to persons who are not
members of your household. For example, a delivery person
slips on the ice on your doorstep and is injured. If you are
found legally responsible, your Personal Liability coverage
will cover the damages (e.g., medical expenses, lost wages)
incurred by the delivery person.
Medical Payments to Others: Pays medical bills if someone
(outside of your family) is injured while on your property,
or is injured by you or a resident family member away from
your property. This coverage is available regardless of
whether or not you are legally responsible for the injury.
You're covered much more than you think
More protection than you may have imagined is included in
your Homeowners coverage. (Of course, that statement is
limited to your individual policy.) Here are general
descriptions of some surprising and welcome benefits of
Homeowners insurance:
■ Loss of Use: Pays for necessary increases in living
expenses you incur if your home is not habitable after a
loss.
■ Necessary Repairs: Pays for temporary repairs to prevent
further damage after a loss.
■ Debris Removal: Pays for debris that may have to be
removed after a loss.
■ Property Removed: covers your property for any direct
loss if you remove it because it is endangered by a covered
peril.
■ Credit Cards: You may be reimbursed for up to $500 for
unauthorized use of your credit cards. This provision also
protects you from losses related to innocent acceptance of
counterfeit money.
A few things to keep in mind...
Certain categories of personal property have limited
coverage in a standard Homeowners policy. Some examples are:
money, securities, business property, watercraft, and theft
of jewelry, furs, firearms, and silverware. Additional
coverage may be secured for an additional premium. Beyond
policy limits, there are some outright exclusions to your
Homeowners policy. For example:
■ Earthquake
■ Flood
■ War
■ Nuclear hazard
■ Intentional loss caused by the insured
■ The business pursuits of the insured
■ The rendering of or failure to render professional
services
■ Motor vehicle liability. |