Homeowners Insurance provides coverage for physical damage to the dwelling structure and also for personal liability.
Physical damage can take the form of fire, extreme weather or water damage from a burst pipe to name a few. Coverage is also included for separate structures (like garages), personal property and loss of use in the event that your home is uninhabitable during restoration.
Most polices include the Replacement Cost valuation method meaning that you receive a new version of the damaged item.
Homeowners insurance is a required policy by most mortgagees and it is often paid for from the homeowners mortgage escrow account.
Certain valuable items such as jewelry need to be handled separately and scheduled to obtain full coverage including theft.
All property claims are subject to a deductible at the time of a loss. Higher deductibles can be an effective way to help contain premiums. Deductibles are a function of what one is both able and willing to absorb at the time of the loss.
In addition to providing coverage for the dwelling structure, all homeowners policies also include liability coverage for when one is personally negligent and legally liable to another.
These damages are usually in the form of bodily injury or property damage but can be in the form of personal injury too. This liability coverage is focused on the premises of the dwelling and does not cover auto liability losses.
Common claims are dog bites, trampoline accidents and slip and falls on ice.