While damage caused by many disasters are covered in your homeowner’s insurance policy, there are a few notable exceptions. In the event that your home is damaged by a flood or earthquake, your standard homeowners insurance policy will fall short. You must seek an exclusive policy to receive coverage for both floods and earthquakes. Additionally, homeowners are responsible for all maintenance-related problems.
- Protection for your home’s structure
In the event that your home is destroyed by a covered peril, this portion of your homeowner’s insurance policy will cover the costs of repairing or rebuilding your home. When determining the appropriate amount of homeowners insurance coverage to obtain, you must calculate how much it would cost to both repair and rebuild your home.
- Personal contents coverage
The standard homeowners insurance policy includes an allotted amount of coverage for your personal contents when they are damaged by a covered peril. By submitting a detailed home inventory to your insurer, you can determine the appropriate amount of coverage to obtain. Additionally, your insurer can help you determine whether or not scheduled personal property coverage is necessary to cover your more valuable belongings.
- Liability coverage
The standard homeowners insurance policy also comes with liability coverage, protecting you and your family members against lawsuits if your household is determined to be at fault for bodily injury or property damage. This means that the expenses associated with defending you in court will also be covered, including legal fees. If you want to obtain additional liability protection, you can purchase a personal umbrella insurance policy that extends your liability coverage in increments of $1 million.
- Additional living expenses when your home becomes inhabitable after a covered peril
Should a storm or other covered peril force you and your family out of your home, this portion of your policy would cover the expenses associated with temporarily relocating.
While the different types of homeowners insurance policies typically mirror across all fronts throughout the country, many companies and individual states alter their policies and have unique names for them, including “standard” and “deluxe.” However, this rule of thumb does not apply to Texas, which has policies that vary from the rest of the country.
Contact the experienced agents at Medwin Insurance Agency, Inc. today to get started protecting your home to the fullest. We will guide you through the process of selecting the appropriate amount of coverage to meet your exclusive needs.
If you own your home:
As a homeowner, you have the luxury to choose between several homeowners insurance policies. Of the various policies, an HO-5 is the most popular, as it provides the broadest coverage. Owners of multi-family properties typically purchase an HO-3 with an endorsement, as this is the most effective way to cover risks associated with renters living in their homes.
- HO-3: This open perils policy provides homeowners with protection against direct damage their home suffers and to other structures on their property, unless specifically excluded. It is important to note that these policies only provide personal property coverage for named perils.
- HO-5: As the most popular and effective form of homeowner coverage, this “broad” policy protects your home from all perils except those specifically excluded, such as for earthquakes and floods.
- HO-8: These policies are designed to protect older homes. A perk of this policy is that you will be reimbursed for damage on an actual cash value basis, which is calculated by taking the replacement cost minus the depreciation of the covered item. Some older homes are excluded from obtaining a full replacement cost policy.
If you rent your home:
- HO4-Renters: These policies are created specifically for those who rent the home they live in. An HO4-Renters policy will protect your personal possessions and any parts of the apartment that you own, such as the new kitchen cabinets you recently installed, against all 16 disasters.
If you own a co-op or a condo:
- H0-6 Condo/Co-Op: These policies are designed for those who own a condo or co-op. Your policy will provide you with coverage for your belongings and the structural parts of the building that you own. It protects you against all 16 disasters.