Homeowners policies have differing provisions,
though they generally provide two types of coverage:
Property and Liability.
Property coverage pays for:
- Damages to your home
- Damages to other structures on your property
- Damages to your personal property
Liability coverage offers protection, including
the cost of legal representation, from covered
claims made against you or a resident family member
for property damage or bodily injury. This section
of your Homeowner's coverage is broken into two
parts:
Personal Liability coverage - this coverage pays,
up to your limit of liability, when you or a
resident family member is found legally responsible
for damage to the property of others or injuries to
persons who are not members of your household. For
example, a delivery person slips on the ice on your
doorstep and is injured. If you are found legally
responsible, your Personal Liability coverage will
cover the damages (e.g., medical expenses, lost
wages) incurred by the delivery person.
Medical Payments to Others - Pays medical bills
if someone (outside of your family) is injured while
on your property, or is injured by you or a resident
family member away from your property. This coverage
is available regardless of whether or not you are
legally responsible for the injury.
You're covered – Much more than you think
More protection than you may have imagined is
included in your Homeowners coverage. (Of course,
that statement is limited to your individual
policy.) Here are general descriptions of some
surprising and welcome benefits of Homeowners
insurance:
■ Loss of Use – Pays for necessary
increases in living expenses you incur if your home
is not habitable after a loss.
■
Necessary Repairs – Pays for temporary repairs to prevent further
damage after a
loss.
■
Debris Removal – Pays for debris that may have to be removed
after a loss.
■
Property Removed – covers your property for any direct loss if
you remove it because
it is endangered by a covered
peril.
■
Credit Cards – You may be reimbursed for up to $500 for
unauthorized use of your
credit cards. This
provision also protects you from losses related to
innocent
acceptance of counterfeit money.
A few things to keep in mind...
Certain categories of personal property have
limited coverage in a standard Homeowners policy.
Some examples are: money, securities, business
property, watercraft, and theft of jewelry, furs,
firearms, and silverware. Additional coverage may be
secured for an additional premium. Beyond policy
limits, there are some outright exclusions to your
Homeowners policy. For example:
■
Earthquake
■
Flood
■
War
■
Nuclear hazard
■
Intentional loss caused by the insured
■
The business pursuits of the insured
■
The rendering of or failure to render professional services
■
Motor vehicle liability.