What Your Homeowners Insurance Covers

By Compuquotes Team on March 27th, 2008
Homeowners Insurance

When you see homeowners insurance you probably think of structural protection against fire and smoke damage. This damage protection of part of a homeowners insurance policy but there is so many more benefits that you get that range from personal possession protection to reimbursement for any living expenses if you are forced to live outside your residence.

You should think of your homeowners insurance policy as a multiple protection package. One portion of your policy is property damage protection which will cover you for any damages that happen at you residence. The second portion covers liability if someone injures themselves on your property, or suffered from property damage.

Your homeowners insurance policy is very useful because it covers everything from your child's friend breaking their arm on your swing set, to your dog biting the mailman, to someone stealing your new camera while on vacation. There are really endless ways that you can benefit from your homeowners insurance policy.

Depending on where you live, you may want to purchase additional protection against floods and earthquakes. While many homeowners' insurance companies will simply deny coverage for these catastrophes, you are able to find a separate company that offers these types of protection to those who need it.

Your homeowners insurance policy will also offer funds if you are left homeless due to a covered disaster, or while your home is being repaired due to a disaster. Additional living expenses will cover the costs of moving your family from one home to another temporary residence, as well as provide money for food and clothing.

There are two different ways that a homeowners insurance policy will reimburse you for your damaged personal belongings that include actual cash value and replacement costs. If your policy offers you the actual cash value of your possessions then you are going to get reimbursed for the depreciated value. This means the older and more wore your items are, the less money you are going to get if they are damaged or stolen.

With a replacement cost homeowners insurance policy you get reimbursed for the price of a new item. With this type of policy there is no depreciation that lowers the price of your items. If you have a five year old camera that gets stolen then you will get the money to purchase a brand new one that is similar in style and brand. This type of policy is more expensive that an actual cash value policy but it is defiantly worth it.

All homeowners insurance policies include a minimum amount of liability insurance. This type of coverage will protect you from being help liable for claims that involve the damage to someone else's property, or any injuries someone else suffers because of you, or on your property. You need liability insurance especially if you have children and animals. Children fall and hurt themselves and there are over four million dog bites a year. It is better to be safe than sorry when it comes to insuring you home.

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