What’s Covered Under Homeowners Insurance?
Homeowners insurance safeguards your home, personal belongings, and liability, protecting you and your family from significant financial loss. The amount of coverage you need largely depends on the value of your home and your total assets. Most policies offer standard coverage in the following areas:
Protects the physical architecture of your home, along with any connected structures like porches, patios, decks and attached garages.
Secures any unattached structures located on your property, such as gazebos, sheds, fences and swimming pools.
Insures your personal possessions against a range of common perils, both at home and when you may be away.
Covers certain legal and litigation costs that may result from injuries or property damage that you and your family are responsible for.
Pays for medical bills and recovery expenses for any guest that may be injured on your property.
LOSS OF USE:
Reimburses you for temporary living expenses if you’re forced to relocate after a covered event, from hotel bills to daily meals.
Insurance providers typically offer a range of policy tiers, each with its own hazard classifications and reimbursement limits. Understanding the difference between these coverage options is essential to picking the right homeowners coverage, as basic mass market offerings can leave you underinsured in your time of need. If you’re not sure what level of coverage you need, our experts are here to work with you to choose the right policy options. We will help you understand your replacement costs and net worth so that you can be sure that you have no significant gaps in your coverage.
Named vs. Open Perils: What’s The Difference?
In most cases, homeowners select insurance coverage that is based on either named or open perils. Generally, standard policies (known as HO-3) only cover perils that are explicitly named in your contract, including:
- Ice, snow, or sleet build-up
- Falling Objects
- Frozen plumbing, HVAC or other household systems
- Riots or civil unrest
- Theft or vandalism
Open peril policies offer protections against a much wider range of hazards, except those that are excluded in your contract. Depending on your specific coverage needs, it may be beneficial to obtain an open peril insurance plan that maximizes your financial security.
What About Supplemental Policies?
Some hazards are not included in any standard or enhanced insurance policies, which is where optional coverages come in. Common supplemental policies include:
- Flood and earthquake insurance
- Sewer backup coverage
- Scheduled personal property
- Identity theft protection
- Law and ordinance support
- Animal liability
Balancing Cost and Coverage
Working with an independent insurance agency can help you assemble the best coverage options from a variety of top-rated carriers. If you’re looking to maximize your insurance coverage while keeping costs in check, work with National Advisors Group today to complete a free Personal Risk Review.