The Different Types of Home Insurance
Your insurance comes in two parts: buildings insurance (cover against damage to the property itself) and contents insurance (for damaged or stolen items within the home). These can be combined or bought separately, so the first step is deciding which option is better for you.
While a standard homeowner’s policy helps protect your house, it typically helps cover more than the physical structure of your home. This can include anything from your personal belongings to your garden, or even medical bills following the injury of a guest on your property. A standard homeowner’s insurance policy may include the following coverages:
If your home and any attached structures, such as shed or garage, are damaged, then ‘dwelling coverage’ helps pay for repairs. The amount of dwelling coverage you need is usually calculated according to the square footage of your house and the amount it would cost to rebuild your home.
Other structures coverage
The ‘other structures’ coverage in your policy helps pay for repairs or replacement for detached structures on your property, such as a fence or shed if they are damaged or destroyed.
Personal property coverage
This type of coverage helps pay to replace certain belongings, such as furniture and electronics, that may be stolen or damaged by a covered loss.
If a visitor is accidentally injured at your home, your policy’s ‘guest medical protection’ helps pay for their resulting medical bills.
Additional living expenses coverage
If you cannot stay in your home after a fire or other covered claim, your homeowner insurance cover may help pay for temporary living costs, such as hotel bills.
Ensure you get the correct cover for you, up to one in five claims can be unsuccessful, mainly because the claimants did not fully understand their policy or what they were covered for.