Are you buying a new home? Or just considering your options to keep your existing home protected with the right coverage? No matter at what stage of homeownership you are in, getting adequate home insurance is critical to saving your investment in any unexpected disaster like fire or flood.
When you look for the homeowner’s insurance policy, there are different types of plans available in the market. And finding the right home insurance coverage is not an easy task without proper knowledge and expert assistance from a professional insurance broker.
A home insurance policy can cover all kinds of damages because of any disaster, and you must be aware of that before selecting your policy. Here’re the five essential items you must include in your policy for financial protection in an emergency:
Dwelling coverage
Dwelling coverage in your home insurance policy provides financial protection for the actual home structure against any damage. If the design of your house is damaged or destroyed due to any disaster, dwelling coverage covers the cost of reconstruction or repairs. Some disaster events are not included under this coverage, so make sure to read through your policy before making a final decision.
The premium cost of dwelling coverage depends on the local construction rates and materials cost to rebuild a property. It would help keep an eye on the current market rates for the following factors to update your dwelling coverage regularly.
Contents coverage
As the name suggests, contents coverage in your home insurance policy provides coverage to the personal items and belongings in the house. These belonging could include furniture to clothing, electronics, appliances, paintings, and other decorative items. This coverage covers the cost to replace your damaged, stolen, or vandalized belongings after any event mentioned in your policy. There are certain limits on the costs of your belonging under this coverage, and you should make sure it is with your policy provider before the purchase.
Liability coverage
Liability coverage provides you protection during a lawsuit. It covers the legal fees of the lawyer and court proceedings in case you are sued for an accidental injury or damage to someone on your property. This coverage covers the cost of any settlement granted to the victim after the lawsuit to protect you from any financial burden.
Loss of use coverage
This coverage covers your living cost in case you have to leave your house after the damage caused to it due to any natural disaster or any other event. Events like tornados, hurricanes, or pest or mold infestation can force you to leave your house – then the loss of use coverage covers your living expenses on hotels, food, and other basic needs of life.
Additional coverage
In addition to the four basic coverages mentioned above, you have the option to consider specific add-ons in your home insurance policy. For example, if you live in a flood or earthquake-prone area, you can include separate coverage under this category. You can also consider getting business coverage in case you operate a business from your home and want to protect it under your existing home coverage. Theft coverage is another add-on that you can add to your policy to cover your financial losses due to events like theft.
These are the basic coverage plans you must consider in your home insurance policy for complete home coverage against financial losses due to a disaster. Take your time to identify events that could cause damage to your property or belongings and consult with a professional insurance broker to build the right home insurance policy as per your unique requirements.