Coverage for the house structure
Homeowner insurance is there to cover for rebuilding or repairing your house in case hail, lightning, hurricane, or other natural disasters are written in the insurance policy. A lot of insurance companies might even cover for the detached structures like toolshed, gazebo, or a garage.
A common insurance policy will not cover the damages done by an earthquake, flood, or general wear and tear.
When buying insurance coverage for your house, remember this:
“Buy enough that it rebuilds your home”
Coverage for personal stuff
The furniture, sports equipment, clothes, or other personal items you own are covered only if they are destroyed by a hurricane, fire, and other covered disasters or stolen. To know if your home is covered correctly, conduct a home inventory check.
Expensive items like furs, arts, jewelry, collectible, and silverware are also covered but there is a financial limit to it. To ensure such items to their complete value, buy a special personal property endorsement to insure the items for real value.
Shrubs, trees, and plants can also be covered in homeowners’ insurance. But it is limited to healthy plants and not the ones with disease or poor maintenance.
Liability coverage is for lawsuits against bodily injury or property damage that is caused by you and your family members to other people. It is also covered for the damage caused by your pets. You get covered for the damages you caused and not for the damages you were caused.
The liability portion of your policy covers the cost of defending you in the court and any court awards according to your insurance policy.
You can always increase your liability coverage according to your need. Discuss with an agent at penny insurance if you want more coverage for your significant assets.
You also get covered for no-fault medical coverage, this is when a neighbor or a friend gets injured at your house he or she can simply provide the medical bills to your insurer. You are not covered for injuries of your pet or family member. This way medical bills are paid without liability claim.
Additional living expenses (ALE)
ALE pays for the living costs you have to pay additionally to live away from your home due to an insured disaster. This includes meals, hotel bills, and other costs while your home is being rebuilt.
Remember ALE coverage has limits and might even have limited time coverage. These limits are separate from the amount needed to repair or rebuild your living space. Even if your ALE is used your insurance company will still pay for the complete cost of rebuilding your house according to the policy limit.
If your property is on rent ALE also covers the rent you have got from the tenant if your house had not been destroyed.
How does renters insurance work?
Generally, two types of coverage can be claimed, Replacement Cost coverage and Actual Cash Value coverage. The difference between both can be understood below:
- Replacement Cost Coverage: covers the lost or damaged items cost.
- Actual Cash Value Coverage: covers the cash value of the damaged or lost items cost.
What does renters insurance cover?
Renter insurance policy got you covered for the destruction or loss of your stuff in the events like:
- Frozen plumbing system
- Impact by a vehicle
You might also be covered for:
- Forced to temporarily leave your house
- Someone has got injured at your property and requires medical attention
- Items you kept in your car have been damaged or lost
What does renters insurance not cover?
You know now what is covered with renter insurance, it is time you know what will not be covered by your renter insurance policy.
- Valuables: the basic renter insurance doesn’t cover the valuables like jewelry and might need additional coverage.
- Home business equipment: running a small business from your home doesn’t mean you will be covered for the equipment of your home business. Like if you own a laptop and it is stolen from your rental property it might not be covered ask your insurer if it is covered or you need additional coverage.
- Motor vehicles: any motor vehicle parked on your property isn’t covered by renter insurance even if it’s a specific watercraft or an aircraft. Typically, the personal items inside the vehicle are covered.
Looking for a low priced best value insurance plan?
Get a free quote from one of our insurance policy specialist. Fill in the form given on our home page or feel free to contact one of our agents on the given contact numbers. Please make sure to place your calls during office hours. We will be much happy to serve you with your needs.