Advice For Working Professionals: Discover What Is and What Isn’t Covered in a Homeowner’s Policy

You’ve spent years working your corporate job, you’ve put up with bad bosses, you’ve worked weekends, and you’ve finally saved up enough money to buy a house. But buying a home isn’t enough — accidents can happen to anyone, even when you feel the safest. And that’s exactly what happens when you find your home standing up against a hurricane or another disaster. Burglars can pose a threat too. Thankfully, you can take out a home insurance cover and feel relaxed when things go wrong. But, it is important to know when you’re covered and when you’re not. Several online sites can help you develop a better understanding to find a better insurance plan.

Here’s a bit about when your home insurance can help:

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Any Damage Done to the Exterior or Interior of Your Property

Your home can undergo catastrophic structural changes after being exposed to fire or hurricanes or acts of vandalism. Thankfully, if you have home insurance your policy payout will compensate you and help you rebuild or repair your house. Your insurance policy will also cover the contents of your home. Furniture, small appliances, large white goods such as refrigerators, along with TVs and computers and even your clothing can cover with a home contents policy. If you opt for ‘off-premises’ cover, it is also possible to get reimbursement for jewelry or sports gear lost or stolen even when you are away from home.

Your policy will not cover damage that is the result of inadequate home maintenance, earthquake or floods, but you can take out policies for each of these as separate riders to get comprehensive protection. Similarly, you may require separate cover for freestanding garages and other similar structures on your property.

Personal Liability for Injuries

Your home insurance can provide liability cover, to protect you if someone files a lawsuit against you for damage to their property or person. It also includes your pets. If your dog runs out into the street and causes a car accident, your insurer will cover all the incurred expenses for the other party. Similarly, if someone breaks your precious vase, you can file a claim for a like for replacement or, if not possible, the monetary value of the vase as it is declared on your policy.

Rental Facility When Your Home is Being Repaired

Any half-decent home insurance policy will also include reimbursement of temporary housing whether it’s renting a house for several months or a few nights at a hotel. These benefits come under a specific part of home insurance called ‘additional living expenses’. It means you are covered for a payout for the costs of accommodation and restaurant meals and any other incidental costs incurred during the time you wait for your home to become habitable.

Here, you need to understand an important point. The amount of cover you have is in proportion to what you pay for insurance in the first place. The greater the premiums, the better the cover and benefits. This means you may not get the same benefits as your neighbor. Some insurance policies will reimburse the actual cash value of replacing your belongings like for like now only. It means how much you spent buying your appliances and furniture three years ago, is not taken into consideration only the current value after depreciation. This makes it even more important to know what is covered in your insurance policy to make sure you really do have the level of cover you need before you finalize your decision.