What Does Homeowner�s Insurance Cover?

This is a guest post.

Homeowner�s insurance is similar to your car insurance in that if your home or even certain belongings within your home become damaged, you will receive compensation for the damage in qualifying circumstances. Also like your car insurance, home insurance can be mandatory in certain situations, such as when financing a home. Financing a home is common, and most lenders require you to purchase homeowner�s insurance before they will agree to a mortgage. Many companies, such as Rogers & Gray Insurance, also offer many different options when it comes to choosing homeowner�s insurance. As a result, it can be important to know the differences between the different types that are commonly available.

How It Works

As with your car insurance, you will pay a monthly premium to your homeowner�s insurance company each month in return for the promise that the insurance company will cover damage and sometimes even replacement costs in certain situations. What situations qualify will depend upon what type of insurance you have. In some cases, the costs covered will also include any expenses acquired due to having to leave the home while repairs are completed, such as for a hotel stay. In addition, you will most likely be required to pay a deductible when an event occurs, which will either be a set, pre-determined amount or a set percentage of the total repair costs.

Property Damage

For most basic home insurance plans, only damage to the property and building itself will be covered in the event of storms, fire, ice, theft, or vandalism. Most home insurance plans will not cover damages caused by floods, earthquakes, or hurricanes, however, and additional coverage may need to be purchased if you live somewhere where these events are common. But the most common type of homeowner�s insurance plan is called the HO-3 plan. This plan will also cover any damage to personal belongings and includes liability coverage.

Liability Coverage

An insurance company such as Rogers and Gray Insurance that offers liability coverage does not only cover damages for your home, but also any damages that may occur to visitors at your home. If a person visiting your home, such as a utility worker or even the mailman, happens to be injured during their visit, you may be found liable for their injuries. Liability coverage on a homeowner�s insurance plan helps cover the costs of medical expenses that may result and may even offer you legal representation if the case is taken to court.