The 7 Most Important Coverages for Homeowners Insurance & Why

Homeowners insurance is an essential tool, when it comes to protecting your home and your belongings. But not all homeowners insurance policies are created equal, and there are certain things that you’ll want to make sure are included in your policy to ensure you have adequate coverage. In this article, we’ll discuss the top seven things you should make sure are included in your homeowners insurance policy, and why they’re important.

1. Dwelling coverage: Dwelling coverage is the part of your policy that covers the physical structure of your home, including the walls, roof, floors, and foundation. It’s important to make sure that your policy provides enough dwelling coverage to fully rebuild your home in the event of a total loss. This coverage should take into account the cost of labor and materials, as well as any upgrades or renovations you’ve made to your home.

2. Personal property coverage: Personal property coverage protects your personal belongings, such as furniture, clothing, and electronics, in the event they are damaged, destroyed, or stolen. Make sure your policy provides enough personal property coverage to replace all of your belongings. You may also want to consider additional coverage for high-value items like jewelry, art, and collectibles.

3. Liability coverage: Liability coverage protects you if someone is injured on your property or if you cause damage to someone else’s property. It’s important to have enough liability coverage to protect your assets in the event of a lawsuit. Most policies provide a minimum of $100,000 in liability coverage, but you may want to consider increasing that amount to provide additional protection.

4. Additional living expenses coverage: If your home is uninhabitable due to damage from a covered event, additional living expenses coverage can help cover the cost of temporary housing, meals, and other living expenses. Make sure your policy provides enough coverage to cover these costs for an extended period of time.

5. Loss of use coverage: Loss of use coverage provides reimbursement for additional living expenses if your home is uninhabitable due to damage from a covered event. This coverage can help cover the cost of a hotel, meals, and other living expenses while your home is being repaired or rebuilt.

6. Medical payments coverage: Medical payments coverage provides coverage for medical expenses if someone is injured on your property, regardless of who was at fault. This coverage can help prevent small accidents from turning into large lawsuits.

7. Deductible: The deductible is the amount you’ll have to pay out of pocket before your insurance coverage kicks in. Make sure you choose a deductible that you can afford to pay in the event of a claim. Generally, a higher deductible will result in a lower premium, but you’ll need to weigh the cost savings against the potential out-of-pocket expense.

In conclusion, homeowners insurance is an important tool for protecting your home and your belongings. Make sure your policy includes adequate dwelling coverage, personal property coverage, liability coverage, additional living expenses coverage, loss of use coverage, medical payments coverage, and a deductible that you can afford. By having these seven things included in your policy, you can have peace of mind knowing that you’re fully protected in the event of a covered loss.