HOMEOWNERS INSURANCE POLICY:

Definition:

The typical homeowners insurance policy covers the home (dwelling), the garage and other structures (attached or detached) on the property, as well as personal possessions (contents coverage) inside the house such as furniture, appliances and clothing. Theses items are insured against a wide variety of perils including windstorms, fire and theft.

The extent of the perils covered depends on the type of policy. An all-risk policy offers the broadest coverage. This covers all perils except those specifically excluded in the policy. It is important to know the type of policy you are purchasing and the coverage afforded (or not afforded) by the policy.

Homeowners insurance also covers additional living expenses. Known as Loss of Use, this provision in the policy reimburses the policyholder for the extra cost of living elsewhere while the house is being restored after a disaster.

The liability portion of the policy covers the homeowner for accidental injuries caused to third parties and their property. One such example is a guest slipping and falling down improperly maintained stairs.

Coverage for flood and earthquake damage is excluded by most policies and must be purchased separately.

Let our professionals help you understand the home insurance policy that is right for you!