Understanding Home Insurance: Coverage and Perils

Home insurance, also known as homeowners insurance, is a versatile and often essential type of coverage that can be crucial to financially protecting residences and their inhabitants. These policies frequently combine various personal insurance protections that may be crucial in managing the aftermath of unexpected accidents or incidents.

What Is Covered Under Home Insurance?

Homeowners insurance is often be customized to suit a person’s needs, preferences and risk tolerance. The most common types of policies typically provide coverage for the following:

• Dwelling—This is the main house and the structures attached to it. It may cover the cost of repair or rebuilding if your home is damaged or destroyed by a covered peril.
• Other structures—These are structures that are not attached to your house, such as detached garages, tool sheds, guest houses and gazebos.
• Contents—This may include the personal belongings inside your home, such as furniture, clothing and appliances.
• Loss of use—If your home is uninhabitable due to a covered loss, this coverage can help pay for additional living expenses, such as hotel bills, restaurant meals and transportation costs.
• Personal liability—If you or another insured (e.g., dependents, spouses and pets) are found legally responsible for another party’s losses, this coverage can help pay for losses and legal costs.

What Perils Are Included or Can Be Added to Home Insurance?

In terms of homeowners insurance, a peril is a specific risk or cause of loss covered by a policy, such as fire, windstorm or theft. The following perils are commonly perils covered under a standard home insurance policy:

• Fire and smoke—This is one of the most common perils covered by home insurance. It can include damage from wildfires and residential fires.
• Thunderstorms and hail—Damage caused by lightning strikes and hail may be covered under home insurance.
• Theft and vandalism—This generally includes damage or loss due to theft, vandalism or malicious mischief.
• Falling objects—If an object falls on your home, such as a tree or tree limb, your home insurance may help pay for resulting costs and losses.

Certain perils, such as hurricanes, floods and earthquakes, are often not covered by standard home insurance policies. However, you can typically purchase separate policies or endorsements to provide coverage for these specific perils.

Ensure Adequate Coverage

Remember, the specifics of what is covered can vary significantly from one policy to another. It’s always a good idea to thoroughly review your policy or consult an insurance professional to understand what your homeowners insurance policy may or may not cover.

Contact Educators Insurance Agency today to learn more about home insurance options or to compare personalized quotes.

This blog is intended for informational and educational use only. It is not exhaustive and should not be construed as legal advice. Please contact your insurance professional for further information.