By Charlie Brown

It is essential for all home buyers and owners to understand the protection that a homeowner’s policy provides. Home insurance offers financial protection against losses that result from accidents, theft and disasters. Standard policies consist of different types of coverage. These include coverage for the home structure, personal belongings, additional living expenses and liberty protection.

Home Structure

A home insurance policy caters for rebuilding or repairing a home if it is ruined or damaged as a result of lightning, fire, hurricane, hail or other disasters that are listed in the policy. Many policies also provide coverage for separate structures like a gazebo, garage or a tool shed which is usually a specified percentage of the total amount of insurance that you have on the house structure.

Standard policies do not typically pay for destruction that is as a result of normal wear and tear, an earthquake or a flood. When buying insurance coverage for your home structure, make sure you purchase enough to cover rebuilding your home.

Personal Possessions

Your sports equipment, clothes, furniture and various personal items are covered in the event they are destroyed by insured disasters such as hurricane or fire and if they are stolen. Coverage is usually a substantial percentage of the insurance on the structure of the home. Carrying out a home inventory is the most effective way to determine whether you have enough coverage.

– Coverage for personal items includes belongings that are stored off premises, which means you can be covered in any part of the world. Some companies restrict the amount to a certain percentage of the insurance amount that you have for your belongings. Find Arizona home insurance companies here.

– There is also coverage for unauthorized use of credit cards. Expensive possessions such as silverware, collectibles, art and jewelry can be covered but there are typically limited amounts if they are stolen. Purchasing a special form of insurance is advisable for insuring valuable items and their official appraised value.

– Standard home insurance covers shrubs, plants and trees but plants and trees that are poorly maintained or diseased are not usually covered.

Liability Protection

– Liability protects you against litigation for property destruction or bodily harm that you or a family member causes to someone else. It also covers damage caused by pets. For example, if your child or dog ruins the neighbor’s couch, you will be covered.

– The liability part of a policy pays for legal defense and court awards up to a certain limit according to the terms of your policy. If your assets are significant and you need more coverage, consider buying an extra liability or umbrella policy that provides greater liability limits and extensive coverage.

– No-fault medical cover is also provided by your liability. If a neighbor or friend is injured within your home, they can submit their medical bills to the home insurance company. This makes it possible for expenses to be paid without subjecting you to a liability claim.

Extra Living Expenses

Additional living expenses cover the costs of living somewhere else if you cannot live at home due to damage caused by an insured disaster. It caters for costs such as hotel bills and meals as well as other costs that exceed your usual financial obligations and are incurred during the period of rebuilding your home.

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