Choosing More Coverage

Posted on: 10 July 2018

Like its name would suggest, homeowner's insurance is designed to financially protect you in the event that something becomes damaged within your home. However, different types of policies will cover different types of damages. Understanding what some of the most common types of homeowner's insurance policies are, and what type of damage they insure against, can help you choose the best homeowner's insurance for your needs.

1. Dwelling Insurance

Homeowner's insurance policies that include dwelling insurance protect your home against certain kinds of damage, like vandalism, falling branches, storms, and fires. This is the most general type of coverage that most homeowner's insurance plans will offer, and so is included in most policies. 

However, keep in mind that dwelling insurance will not cover against specific types of damage, like flooding, earthquakes, tornadoes, and other specific acts of nature. Since these carry their own specific risks depending on your location, they usually come in their own policies or as add-ons to your existing homeowner's insurance.

2. Personal Property Insurance

Personal property insurance provides coverage for your possessions, not your actual real estate. This protects your belongings from damages like the ones mentioned above, but including theft as well. More expensive but holistic plans will provide coverage for your belongings even when you take them with you while traveling, giving you greater peace of mind at the cost of a higher monthly premium. Extremely valuable items, like jewelry and certain electronics, should be appraised by a professional and included within their own section of a personal property plan to ensure that you are adequately protected against its loss.

3. Natural Event Insurance

As mentioned above, specific acts of nature like flooding and tornadoes can cause damage to your property and belongings. For each potential source of damage, you'll need to purchase an individual plan (hence flood insurance, earthquake insurance, and even volcano insurance). These plans will cover financial losses that occur because of the aforementioned natural event that damages your real estate or your belongings, but should only be purchased if you are actually at risk of experiencing that specific natural event.

4. Personal Liability Insurance

Personal liability insurance is designed to cover the medical and court costs associated with any accidental injuries that other people may suffer while on your property. These plans will protect you and your family from being held personally financially liable for any damages resulting from a lawsuit. 

An important thing to keep in mind is that these policies will not cover your own healthcare costs in the event that you get injured at home: further, they will not cover any costs if it can be proven that you or a family member have intentionally hurt someone else.

For more information, contact your local homeowner's insurance company.