5 Basic Areas of Coverage in Home Insurance Policy


Insurance Policy is great savings for everyone. A home is one of the biggest and most valuable investments that you will make in your life. In your abode, you not only create lasting memories with your loved ones but also feel happy, safe, and secure. And, if, unfortunately, the home is afflicted by any unanticipated harm, it is bound to cause an emotional upheaval in your life, apart from also causing financial disturbances.

So, it is only logical and prudent that you protect this important asset against any unexpected perils. And, this is where the role of home insurance comes in. Home insurance provides coverage to repair, renovate, or rebuild your home if it is affected by any unexpected and unfortunate events.

The scope of a typical home insurance policy is large: it provides coverage not just for your home but also in many other spheres. In this article, we help you understand 5 primary areas that are covered in a standard home insurance policy.

Insurance Policy Areas

Coverage for the structure of your home

A conventional home insurance policy covers any damage caused to the physical structure of the building of your home against unanticipated risks and perils. This could be damage caused either due to natural disasters such as hail, lightning, and storms or due to man made calamities such as fire, robbery, riots, or vandalism.

A few natural calamities such as earthquakes and floods, however, could be excluded in some policies.

Apart from the structure of the home, plumbing, heating, and cooling systems of the home are also included in most standard home insurance policies.

Coverage for additional or detached structures

Apart from protecting the physical structure of your home, home insurance also covers the additional structures that are not necessarily part of your home. These include structures such as a swimming pool, a gazebo, a garage, a barn, a tool shed, a mailbox, the boundary walls, and fences.

Imagine how distraught you would be to know that a tree has fallen on the boundary wall of your home and destroyed it. Apart from the emotional turmoil it would cause, the financial cost of such an accident could be massive. The right home insurance, however, will help you reimburse the expenses you would incur to repair such a damage.

Insurance Policy

Coverage due to personal liability for damage or injuries

A standard home insurance also covers you for any damage or injury caused by you or your family members to a third party on the insured property. Moreover, most home insurance policies also cover for damages caused by your pets to others.

Also, medical expenses and legal charges that arise if family members or any other persons living in the insured home are injured are also covered.

So, if you possess home insurance, you will be secured from any legal and financial liabilities arising out of damage to a third-party.

Coverage for contents of the home and your personal belongings

Home insurance also offers coverage for the contents of your home. This includes electrical appliances such as televisions, refrigerators, microwaves, computers, and air conditioners. Apart from this, furniture such as couches, beds, and dining tables as well as furnishings such as curtains and rugs are covered. Further, jewellery, collectibles, art pieces, silverware, and sports equipment are also covered.

A conventional home insurance also provides coverage against your personal belongings that might have been damaged or destroyed in your insured home. Such personal belongings include important documents, clothes, your personal electronic items and gadgets such as laptops, and phones.

It is important to note that there could be a limit to such items and their entire value might not be reimbursed.

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Coverage for additional living expenses

If you are not able to live in your home due to an insured damage, a standard home insurance policy covers for the expenses that you might have incurred due to living in an alternate accommodation during the time that your home is being renovated. This includes hotel bills, restaurant bills, and other expenses.

For instance, if there is a fire accident in your home and it becomes uninhabitable due to the smell of the smoke and the damages caused due to the fire, home insurance will pay for all the expenses that you incur in living in an alternate lodging while your home is being rebuilt.

Moreover, if you rent your insured house to a tenant, home insurance also reimburses the amount that you would have earned from the rent that the tenant would pay.

With coverage provided for all such eventualities, don’t you think that home insurance provides you with the much-needed peace of mind? 

Also, a home is made up of many moving parts and damages to any of those parts can make your living inconvenient. However, once you have a robust home insurance in place, you can be assured of a comfortable living without worrying about unexpected costs that might arise to renovate those parts.

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