Coverage for the Structure of Your Home

This is the part of a policy that pays to repair or rebuild a home if it is damaged or destroyed by one of the covered causes in the policy. Most policies also allocate a small percentage of this coverage to protect structures that are not attached to our house such as a garage, shed, or gazebo.

Coverage for Personal Belongings

This coverage is for furniture, clothes, equipment and other personal items if they are stolen or destroyed by a covered cause. Most companies will provide coverage for 50% to 70% of the amount of insurance on the structure. Expensive items such as jewelry, firearms, and antiques are covered but there are usually dollar limits if they are stolen. To insure these items to their full value, individuals can purchase a special personal property floater and ensure them for it’s appraised value. Trees, plants, and shrubs are also covered under standard homeowners insurance generally up to about $500 per item.

Liability Protection

Liability covers against lawsuits for bodily injury or property damage that policyholders or family members cause to other people. It also pays for damage caused by pets. This portion of the policy pays for both the cost of defending the policyholder in court and any court awards, up to the limit of the policy. Coverage is not just in the home but extends to anywhere in the world.

Additional Living Expenses

This pays the additional cost of living away from home if your house is uninhabitable due to damage from a covered cause. It covers hotel bills, restaurant meals, and other living expenses incurred while the home is being repaired or rebuilt. Coverage for additional living expense differs from company to company.