What does homeowners coverage protect?
What does homeowners coverage protect? The homeowner’s insurance contains several coverages including the so-called dwelling coverage. This is the part of homeowner’s insurance that helps rebuild or repair the physical structure of the home if it is damaged by a covered peril such as fire, lightning, storms, hail, vandalism, theft, falling trees, water damage, and mold damage, among others.
Dwelling not only covers damage to the main structure of the home, but it can also cover structures attached to it. That is, if there is an adjoining garage that is not detached, it would also be covered. However, it would not cover it if it was separated from the main residence, nor does it cover the fence of the house. To protect the latter you need a different policy.
The housing policy covers the foundation, the floors, the windows, the bathrooms, the roof, all the plumbing, and the electrical system, and if there was a built pool it would also be covered.
It is important when making your home insurance, to take into account that there is a relationship between dwelling coverage and other separate structures. In other words, in general, the insurance of other structures is 10% of the home insurance. If the coverage limit for your home is $400,000, coverage for other structures will be $40,000.
Homeowners should also pay attention to the coverage limit, which is the maximum amount the insurance company will pay to rebuild the home if it is damaged.
Another basic aspect of home insurance is that it does not cover risks such as flooding or earthquakes. If your home is in a flood-prone area. The recommendation is that you purchase flood insurance in addition to homeowners insurance. What does homeowners coverage protect?