Homeowner’s insurance protects your home from damage and protects you and your family. Having insurance is essential, but because these policies can be endlessly customized, it can be a challenge to determine what coverage you need and what coverage you don’t. Here’s a closer look.
What Kinds of Coverage Does a Standard Home Insurance Policy Offer?
Before diving into the types of specialized or add-on coverage you might need, make sure you understand the coverage a “basic” policy affords you:
Interior or Exterior Damage
Your policy will pay for repairs if your home’s exterior or interior is damaged due to a covered weather event, fire, or vandalism. Many policies extend to sheds and other small outbuildings as well.
Most policies will also cover damage to your home’s contents (like your clothing, appliances, furniture, and personal belongings) if they are damaged or destroyed in a covered event. However, your policy will likely cap the total damage payment at a certain dollar amount.
Legal Liability
If a visitor to your home is injured in a slip and fall incident or is attacked by your dog, you may face a premises liability lawsuit. Your home insurance will protect you in this scenario. If the injured person files a claim against your insurance or files a lawsuit, your policy will pay for their injuries and for your legal defense.
However, it’s important to pay attention to liability coverage limits. For instance, suppose that you choose an inexpensive policy with $100,000 of liability coverage. If a visitor suffers a severe injury and a court awards them $200,000 in damages, your insurance company would only pay up to $100,000. You would then be personally liable for the other $100,000.
When buying coverage, don’t just look for the lowest homeowner’s insurance quote. You should always verify that your coverage will adequately protect you.
Additional Living Expenses (ALE)
If your home is being repaired or rebuilt after a covered event, your homeowner’s insurance should pay for the repairs. Additional living expenses (ALE) coverage will pay you a certain amount per day to cover a hotel stay, meals, and other incidental expenses.
What Do Standard Policies Typically Not Cover?
In an ideal world, your home insurance policy would pay for any kind of damage to your home. However, most policies do not cover the following:
- Damage due to poor maintenance
- Earthquake damage
- Damage from floods
- Pest or mold damage
- Damage to very expensive belongings (like jewelry or artwork)
If your home insurance policy does not offer these kinds of coverage, that doesn’t mean you won’t be able to get it. Some policies will allow you to purchase separate coverage. For instance, if you have a collection of expensive artwork, you may need to insure it separately.
Most insurance companies won’t pay for flood damage, so if you live in a high-risk area, you might consider federally sponsored flood insurance.
Need Help Finding the Right Homeowner’s Insurance Policy?
Home insurance is critical when it comes to protecting your investment. However, homeowner’s insurance is more complex than many people realize, and selecting the right policy is often more difficult than anticipated.
Fortunately, you don’t have to select your policy alone. Warrior Insurance & Services Group is proud to help Colorado families find personalized, cost-effective coverage. As independent insurance agents, we aren’t bound to any single carrier, so we work for you — not for the insurance company. Contact us for a quote today!
