Homeowners insurance or simply home insurance is a policy that provides protection to your property’s structure inclusive of your belongings in the event of natural disasters and accidents, such as hurricanes and fire, respectively.
However, damage due to floods, earthquakes, and poor home maintenance aren’t usually covered in the policy. But, adding a separate provision to your existing insurance will help you acquire coverage for such events.
Common Homeowners Insurance Provisions
- Internal and external damages
In the event of a fire, lightning, hurricanes, and even vandalism, a homeowners insurance policy (based on the premiums) will recompense whatever internal or external damages these disasters create to your property.
- Damage or injuries caused by you or a family member
A home insurance policy provides a liability coverage to homeowners, which includes your pets. So, if your dog has accidentally bit a neighbor whether on your premises or theirs, your insurance policy can cover the medical expenses and even pay for lawsuits filed by your neighbor. Also, in the event that you or a family member destroyed a neighbor’s property, you can file a claim for reimbursement.
- Loss of your belongings due to disasters
Most homeowners insurance policies, according to the Insurance Information Institute (III), will cover 50% to 70% recompensation to loss of personal belongings and high-priced possessions. So you can file a claim if your clothing, furniture, appliances, and even jewelry are lost or destroyed as a result of a hurricane or other disaster that is covered in the policy.
- Hotel or house rental during the repairing and rebuilding process
In case that a disaster has caused serious damages to your home which makes repairing or rebuilding a necessity (although this is an unlikely event), your insurance policy coverage under the name Additional Living Expenses (ALE) will reimburse you for the rent, restaurant meals, and incidental expenses you may incur while your home is being repaired or rebuilt.