When looking at insurance, you want to make sure the policy you have covers the cost of your home and your valuables in it. So what property does homeowners insurance cover? That depends.
General policies will typically cover the structure of your home, any additional structures on your property like a detached garage or shed, personal items, loss of use (temporary alternative living expenses), liability (minor accidents or damage that happen on your property or someone else’s) and medical payments (minor expenses for injury of visitors on your property). Depending on your policy, the amount of coverage will vary and cap out at different price points. It’s also important to note that the circumstance to which your property is damaged also factors into whether you are covered. For instance, a house fire is typical standard coverage with insurance, however, flooding and sewer backup are not. The circumstances under which you are covered are key details to be aware of.
If you have a policy in place, it’s good to revisit it annually to make sure that your home is insured for new values and circumstances. Doing this will help you keep policy inclusions and exclusions top of mind throughout the year and hopefully remind you to safe-proof areas in need of repair or checking. This may seem redundant to many folks but if you know what you have, you’re in a better spot to recognize issues before they become serious problems. Don’t wait until disaster strikes to see if your policy actually covers the cost.
Guaranteed Replacement Policy
Guaranteed Replacement policies are another form of homeowners insurance. With this, your insurance company will pay up to 120% of the coverage you are insured for. For example, if you are insured for $200,000 and your home and your possessions cost more to replace than your policy, your insurance will cover up to $240,000 to replace.
Riders and Umbrellas
Riders and umbrellas are additional insurance policies you can take out to cover excluded items under your regular insurance. Some items that are generally excluded from standard homeowners insurance include expensive jewelry, artwork and antiques, fine silverware, oriental rugs and computer equipment, serious liability and negligence protection, home businesses, sewer and water backup, floods, mold damage and earthquakes. Specific exclusions vary across insurance companies, property locations and policies, so your best bet is to check your specific homeowner’s policy or research the offerings in your area.
Contact us to sit down with an Accel Group Agent and discuss coverage options for your home.