Do You Know What Your Home Insurance Covers? Read This! - Aha!NOW (2024)

Your home is as valuable as your life. If you get home insurance, you protect it from any potential issues. Just like life insurance, you should know what all your home insurance covers or in other words, how many ways does it protect your house. While different companies may cover different aspects, here are some common aspects generally covered by home insurance. ~ Ed.

While you may be handy with the tools and know how to maintain or build a home, you might not know the in’s and out’s of home insurance.

That’sokay, a lot of people don’t and it seems that this information should be morewidely available.

Forthose that need to know what their home insurance covers, this is for you.

Theseare some of the ways your insurance protects yourhouse and any potential issues that you could run into as ahomeowner. Comparing home insurance is one way to decide on the right coverageneeds that you can benefit from too.

4 Things That Your Home Insurance Covers

Hereare the things that your home insurance covers:

Liability

What is a liability? Liability is the legalterm for who is to blame when an accident occurs.

Homescan be our safe place, but unfortunately, they also happen to contain a lot ofways in which people can get hurt. Worst of all is when someone, but ourselfget hurt.

Many home insurance policies should cover this, but it’s best to do some research and comparing to be sure.

Homeinsurance ensures that your house is protected in the instance that someone isinjured in your home or on your property, and if they seek legal compensation.In short, this insurance covers a lawsuit if someone gets hurt in or on yourhome, or around the house.

It’ssmart to protect your property to prevent these situations, but it is smarterto compare any insurance policies to see which ones have good liability claimsprotection.

Manypeople do not realize how their property can cause liability in cases ofinjury, but most home insurance policies include this because injuries canhappen so often, like falling in a pool if it isn’t fenced off.

Home Damage

Probablythe one most people think of first when it comes to home insurance coverage.

Homeinsurance covers damage that is done directly to your home. The ways your homecan be damaged are plenty, and insurance coverage attempts to prevent you fromhaving to foot the bill entirely, or at all.

Fire is one of the biggest causes of damage, smoke as well. Home insurance covers vandalism and weather conditions that are common like wind or rain/hail.

Forsevere damage, like natural disasters, additional insurance coverage is usuallyrequired, but not needed. This is only if your home is in an area that islikely to be damaged from these because they are common.

Structure protection

If yourhome has a detached garage, shed, or any other structure on the property youown, home insurance usually covers that as well. Like the insurance that coversyour home, or dwelling, these structures are usually bundled in the initialpolicy.

Thesestructures are usually significantly weaker in foundation than your actualhouse, so the damage done to them will be much worse. That is why they arecovered by home insurance.

Althoughmost policies cover property structures, check your own home’s policy to makesure your entire property is protected.

Personal property

Isn’tall of my property considered personal property? Not exactly.

Personalproperty is stuff or belongings you own that was purchased separately from thehome. Stuff like laptops, phones, clothing or furniture fall under the categoryof personal property. These belongings are protected in case your home getsdamaged, or broken into.

If afire burned down the house, the insurance would cover the costs of the home aswell as anything inside. Some personal property needs to be specificallycovered under added insurance though.

Luxuryitems like jewelry, fur coats, or highly valuable artwork, can be insuredindividually or through an additional coverage plan. The reason for this isbecause of the delicate nature of these belongings. They are not commonpersonal property so they would be unlikely to be in many homes.

Wrapping It Up

Whileyou may know the in’s and out’s of how your home worksand the handiness to keep your house up to shape, you may not know how yourhouse is kept safe. For many, home insurance seems like a one-stop way toprotect your entire home.

While this is slightly true, there are more details of how your house is protected. For starters, your home is protected by home insurance. This means the actual house itself is protected by the insurance policy from things like fire, wind, vandalism.

Liabilityis how insurance protects you from any legal action that can be taken againstyou. If someone hurts themselves on your property, or if your property damagessomeone else’s home (falling tree), you are to blame. Insurance can protect youfrom those fees.

Theother protection your home receives is on structures like detached garages andsheds, which can also be damaged or lost entirely, as well as any personalbelongings you own like electronics.

Now youknow what your home insurance covers!

Over to you

Whatall does your home insurance cover? How has your experience been? Share in thecomments.

Disclaimer: Though the views expressed are of the author’s own, this article has been checked for its authenticity of information and resource links provided for a better and deeper understanding of the subject matter. However, you're suggested to make your diligent research and consult subject experts to decide what is best for you. If you spot any factual errors, spelling, or grammatical mistakes in the article, please report at [emailprotected]. Thanks.