Your home is far more than four walls and a roof. Your home provides protection to the people and things you hold dear. But what protects the structure? As sturdy as they may be, houses are damaged every day in America. The reason their owners aren’t in a constant state of worry over what might happen to their largest asset is that they have homeowners insurance. Here are five things this type of coverage protects against:
1. Natural Disasters
We’ve all seen news footage of homes being destroyed by hurricanes, fires, tornadoes, and other unavoidable events. Although the families who lived in them must have been devastated, all is not lost. As long as they were covered adequately, the owners will be reimbursed for their full value, and for the value of all contents. Known as dwelling protection, it is perhaps the most important provision of your homeowners insurance policy.
We all know that accidents happen. But when they happen on your property, you may be held legally responsible. If, for example, someone slips and breaks their hip on your icy front walk, they could file a personal injury lawsuit against you. The good news is that your homeowners coverage should protect you from direct loss. As long as you were not grossly negligent, most policies offer up to $100,000 in limited liability insurance.
Whether the result of robbery, burglary, or some other reason, your policy safeguards you from theft. If your possessions are unlawfully taken, you will be reimbursed for their full value by your insurer. Under the conditions of most policies, you will have the choice of whether you would like cash or replacement value for any stolen item.
4. Medical Expenses
If someone is injured on your property and they don’t want to sue you, homeowners insurance may pay for their medical bills. Known as guest medical coverage, this common provision pays for expenses related to an injury that is not covered by the limited liability portion of your policy. In most cases, your insurer will pay for common medical expenses like ambulance rides, X-rays, and a short hospital stay.
5. Loss Of Use
If your home is destroyed, or is damaged to the point where it is no longer habitable, your property coverage will pay to relocate you. Whether the cause of the damage was a burst pipe or a hurricane, your insurer is financially responsible for providing alternate shelter under the “loss of use” provision. This invaluable coverage will reimburse you for hotels, rental properties, meals, and any other living expenses you incur up to a certain point. While the portion does vary, most insurers pay up to twenty percent of your total coverage for loss of use. In other words, if your home were insured for $400,000, you would be covered for up to $80,000.
For these reasons and many more, every property owner should purchase homeowners insurance.