Buying a house can be one of the biggest decisions a person makes in his or her lifetime. It is not just a one-time purchase that can be forgotten, it’s a tremendous investment that requires time, thought and protection to maintain it over the years. This is why people should take great care in choosing the right home insurance as well. But being new to home ownership, many people have to ask: what does home insurance cover?
Coverage for the Actual Dwelling or Residence
This is probably the most obvious coverage in a home insurance policy. This coverage is there to pay for the repair or replacement of your home in case of damage or destruction caused by fire, earthquake, tornadoes or other forces. However, a separate policy must be purchased to provide coverage for losses due to flooding. This coverage is subject to a deductible, which is the amount of the loss that you will pay for yourself before the policy begins providing benefits. The higher your deductible, the lower the cost of your home insurance.
Coverage for Your Personal Belongings
This part of your policy covers any damage, loss, or destruction of your personal property such as jewelry, electronics, and home furnishings. The limit for this amount is usually a percentage of the coverage for the residence, typically ranging from 50-75% of the replacement value of the home. This coverage is also subject to a deductible, and has certain limits for items such as jewelry, firearms, money, and other items. Be sure to check with your agent to make sure you have additional coverage for things such as this.
Coverage for Your Liability
This covers any liability costs that may be incurred by the homeowner. Examples of a liability include:
- Someone having an accident while on your property
- Property damage to others caused by your actions or the actions of any family member including your pets
There is a lot more to homeowners insurance than just these three items, but this is a good start to understanding why home insurance is important to have.
If you’re a new homeowner – congratulations! If you have questions about what type of coverage you need for your new home, Couri Insurance has the expertise to find you the policies that fit your needs. For more information or if you have any questions, don’t hesitate to call, email, or stop by our main offices at 379 West Main Street, Waukesha.