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What Different Types Of Coverage Are Commonly Offered By Homeowner's Insurance Policies?

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If you own your own home, it is very important to carry a homeowner's insurance policy. This ensures that a homeowner has damages covered should some sort of disaster occur in his home. These are some of the different types of coverage that are commonly offered by a homeowner's insurance policies.

Property Damage 

If a person has homeowner's insurance and a fire occurs that destroys their home, they will be reimbursed for the loss of their home. This allows them to have repairs done or replace the home if it is a total loss. The belongings inside the home will also be covered by the insurance policy.

If the homeowner also has other structures near their home that are also damaged or destroyed, these can also be insured as well. For instance, if a fire, tornado or flood also causes damage to a shed, garage or other structure on the same property, the homeowner can also be reimbursed for this damage too.

Living Expenses 

Some homeowners insurance agencies also offer customers the option for purchasing coverage for living expenses. This means that if a person's home is destroyed and they must stay in a hotel or rental home while waiting for their home to be replaced, the insurance will cover the expenses. If a vehicle is lost in this incident, the insurance may also pay for the cost of renting a car until a new vehicle is bought.

Personal Liability 

Another important type of coverage that is included in homeowner's insurance is personal liability. This covers a property owner if someone if injured on his property. If the other party brings a suit against you, this coverage often pays for the court costs and attorney's fees concerning the suit.

Medical Expenses 

Homeowner's insurance also covers the cost of medical expenses if another person is injured on your property. It also covers the injured party's expenses if he is injured elsewhere if the injury is determined to be your fault.

The amount of coverage you have with homeowner's insurance coverage, depends on what level of coverage you purchase. For example, your home may be valued at $500,000, but if you have only purchased $300,000 worth of coverage, this is the maximum amount that you can be reimbursed. When purchasing homeowner's insurance, it is a good idea to buy a policy that pays you enough money to replace your home entirely so you will have plenty of coverage if a disaster occurs.