Your home is not only a roof above you. It could very well be your most valuable asset — and one that you probably wouldn’t have the means to replace with your own funds if a disaster happens. That’s why ensuring the protection of your residence with the appropriate homeowner’s insurance is crucial. Here are some types of homeowners insurance that you should be aware of:
Dwelling Coverage
Dwelling coverage insures your home’s structure, including walls, floors, windows, and roof. Built-in appliances, like furnaces, are usually part of this coverage. It also includes structures attached to your home, such as a garage, porch, or deck.
What’s included: Most homeowners’ policies cover your dwelling for any damage caused, not specifically excluded. Common reasons for claims include wind, hail, freezing, fire, and lightning.
Other Structures Coverage
Other structures’ coverage does exactly what it says – it offers insurance for structures on your property that aren’t connected to your house. This might include things like a shed, fence, or separate garage.
What’s included: Similar to dwelling coverage, the majority of homeowners insurance policies include coverage for other structures in case of events that aren’t specifically excluded. This typically means you’re protected against occurrences like fire, wind, hail, and snow, among others.
Personal Property Coverage
Personal property means your personal belongings, such as clothes, furniture, electronics, and appliances that aren’t part of the house. Homeowners policies usually protect these items wherever they are, not just inside your home. So, if someone takes your bike from outside a store, it’s likely covered (minus your deductible).
What’s included: Unlike dwelling and other structures coverage, personal property coverage in most homeowners policies operates differently. Instead of covering your belongings for anything not specifically excluded, these policies often protect against only the disasters listed.
Also known as ‘perils’ in your policy, these events include:
Hail and windstorm
Lightning or fire
Theft
Smoke
Vandalism
Explosions
Falling objects
Volcanic eruptions
Weight of sleet, snow, and ice
Riots
Damage from vehicles
Sudden damage from a power surge
Loss of Use Coverage
Sometimes referred to as “additional living expenses,” the loss of use part of your homeowner’s policy can be useful if your home becomes too damaged for you to stay in. This coverage might pay for hotel stays, meals at restaurants, or other costs related to living elsewhere when your home is unlivable due to a covered disaster.
What’s included: As long as your home is being repaired for a claim covered by your policy, you’re likely eligible for loss of use coverage. However, if the damage to your home results from a disaster that isn’t covered—like a flood—your insurer won’t cover your extra living expenses either.