Home Insurance Policy Basic Coverage
There are 4 types of coverage contained in the home insurance policy.
Included are:
Dwelling and Personal Property
Personal Liability
Medical Payments
Additional Living Expenses
In this article, Dwelling and Personal Property Damage will be explained:
Property damage coverage will help pay for any damage to your dwelling or personal property. Other parts of your home, such as a detached garage, a shed, or any other building on your property are usually covered for about 10% of the amount of coverage on your home.
Personal property coverage pays for your personal property, which includes your furniture, clothing, and other personal property.
The amount of that insurance coverage is about 50% of the policy limit on your home. This type of coverage is also limited by the type of loss specifically listed in your policy.
The coverage usually only pays the current cash value of the item damaged or destroyed, unless you actually purchased replacement cost coverage.
Your home insurance policy also includes off-premises coverage. What this means is that the policy covers your personal belongings against theft even when they are not in your dwelling.
Your insurance company will reimburse you for the cost of replacing your suitcase and whatever its content is if it were lost or stolen when you were away on vacation, but only for replacing them with the personal property of the same kind and quality.
Earthquakes and floods are not covered by standard insurance plans. To insure your home against these natural disasters, you will need to purchase a separate insurance policy. However, here is a list of catastrophes that are covered by homeowners insurance: fire, lightening, theft, vandalism, overflow of water from plumbing, just to name a few. You need to think ahead when purchasing homeowners insurance. When assessing the amount of coverage you should buy, think about how much it would cost to reconstruct your home if it were completely demolished.
Copyright 2005 Fern Kuhn, RN
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