Homeowners insurance protects your house against hazards like fire, floods, or tornadoes. If your home is damaged or destroyed by either of the risks covered, your homeowner’s insurance will pay to repair or rebuild the house.
However, that is not all. Repairing or rebuilding your house is just one example of how your coverage protects you. Below are other ways homeowners insurance covers you:
It pays to replace your personal property if they are damaged or stolen
Many people are unaware that homeowners insurance covers personal property like clothing, furniture, appliances, and other personalities like jewelry. If they are lost, stolen, and damaged due to any of the risks you are insured from, then your cover will apply. It is important to note that there may be liability limits, which could translate to lower payouts. Some insurance companies provide additional coverage that may increase such limits.
It pays for temporary living expenses as your house is being rebuilt or repaired
If your house is extensively damaged and you can no longer live in it, your homeowner’s insurance will pay for your temporary accommodations. Under the loss of use coverage, your homeowner’s insurance can reimburse you for the living expenses you incur when you have to live outside your home, such as restaurant meals, dry cleaning and even additional transport costs.
It covers your personal liability if you are responsible for injury or damage
In addition to covering your property and living expenses, homeowner’s insurance covers you if you are legally liable for an accidental injury or damage to property. For instance, if your dog bites someone, your homeowner’s insurance can kick in to cover the victim’s damages, such as medical bills, lost wages, or even the cost of the suit, among others.
You deserve insurance benefits as long as you have been paying your premiums on time. As such, it is crucial to understand your coverage carefully and protect your legal rights if your insurance claim is unfairly denied.