Your home is one of the most important assets you own, and protecting this valuable asset should be your top priority. Homeowners’ Insurance provides coverage in the event of damage to your property, as well as liability for injuries and damage you cause to other people.
Structure coverage provides for the cost of repairing or rebuilding your home if it is damaged or destroyed by fire, hurricane, hail, lightning or other disaster listed in your policy. Damage caused by flood or earthquake does not fall under this coverage. When purchasing coverage for the structure of your home, it is important to buy enough to rebuild.
Personal Belongings Coverage
Personal belongings coverage provides protection against theft, fire, hurricane, or other insured disaster of your personal items such as furniture, clothes, sports equipment etc. Most Insurance companies provide coverage for 50% to 70% of the amount of insurance you have on the structure of your home. Conduct a home inventory to determine if this coverage is adequate.
Liability Protection Coverage
Liability coverage provides protection against lawsuits for bodily injury or property damage that you or family members cause to others. This coverage also provides protection against damage caused by your pets.
The liability portion of your policy pays the legal costs incurred for defending you in court, as well as any court awards, up to the limit of your policy. You are also covered not just in your home, but anywhere in the world.
Liability limits usually start at about $100,000, but most experts recommend that you purchase at least $300,000 worth of protection. You can purchase an umbrella or excess liability policy which provides broader coverage, including claims against you for libel and slander, as well as higher liability limits. Generally, umbrella policies cost between $200 to $350 for $1 million of additional liability protection.
Additional Living Expenses
This coverage pays the additional costs of living away from home if you can’t live there due to damage from a fire, storm or other insured disaster. It covers hotel bills, restaurant meals and other living expenses incurred while your home is being rebuilt.