Homeowners Insurance: What It Does and Does Not Cover

Homeowners insurance is crucial to protect your home (and your pocketbook) against losses. However, it may surprise you to know what is covered by homeowners insurance and what is not. Below are some of those things.

Structure of your home. Whether it is your roof, walls, windows, or other parts of the physical structure of your home, a standard homeowners insurance policy likely covers damages caused by hail, lightning, fire, or other insured disasters. Garages, sheds, and other detached structures are also covered by most policies.

Floods and earthquakes. Many people assume that these natural disasters will be covered with a general homeowners insurance policy, but that is not the case. If your home is in a flood or earthquake zone, it would be wise to consider obtaining flood or earthquake insurance to protect your home.

Personal belongings. Most homeowners insurance policies will cover 50-70% of the value of insurance you have on the structure of the house for personal belongings, such as furniture, clothes, and appliances if they are damaged by insured disasters or theft. However, if you have items of special value, such as jewelry or expensive art, you may wish to consider purchasing additional coverage, as there can be limits on the dollar amount if these items are stolen.

Additional living expenses. If your home is rendered uninhabitable due to a disaster, your hotel stays or restaurant bills above and beyond your usual cost of living will be covered.

Home business expenses. Most homeowners insurance policies do not cover any incidents arising from business activity. To ensure maximum coverage, consider obtaining a business insurance policy as well.

We are here to help make sure that your home is protected. Reach out to us today to assess your needs and to help you choose any additional policies that you may need.