Home owner insurance coverage
Your home is likely to be a major asset and should be protected by proper insurance coverage. Also, do not forget the tips for how to live smart in your home, and be sure the ownership of your home gives you optimal protection. Homeowners insurance protects the value of your home against loss from fire, theft, and other risks, all part of a comprehensive asset protection plan. Homeowners insurance is also the primary source of liability protection from suits relating to your residence.
Homeowners insurance includes various types of coverage, and you should make sure all are reasonable in light of the value of your home and other assets covered. The dwelling coverage is the most significant coverage of homeowners policy. This coverage applies to the dwelling, attached structures, and materials and supplies on or adjacent to the residence premises for use in the construction, alteration or repair of the dwelling or other structures.
Dwelling coverage is also sold as a stand alone policy.
When insuring personal property, the most important coverage offered by a homeowners policy is personal property coverage. Personal property coverage is included on all homeowners forms. Personal property coverage is the major form of property insurance. At your request, personal property owned by others may be covered while it is on your premises, and personal property of a guest or residence employee also may be covered while it is at your house. But if personal property is moved to a newly acquired principal residence, this limitation does not apply during the first thirty days after the property is moved.
If after a fire for which you are covered under your policy, you can not continue to live in your residence premises, loss of use expenses such as renting a hotel room, or other temporary housing, as well as the expense of eating in restaurants can be recovered under loss of use.
Under this coverage, a combination of additional living expense and fair rental value are used to combine coverage for an indirect loss due to the loss of use of the covered property. Many policies are including loss of use, which covers the cost of living expenses if you cannot occupy your home because of damage. You probably want an all risks policy, which covers the cost of living expenses if you cannot occupy your home because of damage. You probably want an all risks policy, which covers all types of loss, not just specific losses or risks specified in the policy. There is a wide range of variations on these policies, all of which are beyond the scope, but which should review, understand, and plan for. You must also pay careful attention to how the policy describes costs that will be paid. You want replacement cost or something approaching it at least for the dwelling, so that you receive sufficient insurance proceeds to pay for rebuilding what was lost.
If you have a home based business, do not assume that your regular homeowners insurance covers it or, if it does, that the coverage is adequate.
Even if you do not own a home, you still need coverage. If you rent, a landlords insurance coverage will not cover your personal property or liability if someone sues you, so renters insurance is necessary. If you own a condominium or cooperative apartment, a special policy should be purchased that does not duplicate coverage that the homeowners association or cooperative has but that does cover your personal exposure.
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