The basic parts of homeowners insurance

What does home mean to you? I believe there are as many answers as there are people answering the question. To some it’s where they were born, place they were running around in the childhood, it’s where their parents are raising grandchildren. To others home is where they start a new family, new life. For some it’s a happy place, for somebody else it might be a burden.

No matter what home is to us, we still should protect it. Actually, getting homeowners insurance does not mean protection only from fire, earthquakes or tornados, it includes so many other things like you being sued for your dog scare a neighbor’s child , who was teasing him, in spite of your repeated warnings to leave the dog alone; or you spilling red wine on your friends white carpet, which needs a replacement; or somebody’s getting injured in your house , no matter who’s fault that is. All these and much-much more could be covered. The problem for a lot of us is to buy homeowners insurance right , without any gaps, so at claim time there are no unpleasant surprises.

There are six major coverage parts of a typical homeowner’s policy.

  • Coverage A : damage to or destruction of your residence
  • Coverage B : damage to or destruction of detached structures
  • Coverage C : damage to, destruction of, or theft of personal belongings anywhere in the world
  • Coverage D : the added living costs you incur as a result of a loss covered by A, B, or C (lodging, meals and utilities)
  • Coverage E : personal liability for injuries and property damage at home and anywhere else in the world
  • Coverage F : medical payments to guests injured on your premises, regardless of any fault

It is pretty complex with lots of exclusions and limitations. You must not make a mistake of getting your insurance based on a price alone. You may end up with a cheaper price for the wrong coverage.