Homeowners insurance provides coverage to repair or rebuild your home after events like fire, smoke, theft, vandalism, a falling tree, or damage caused by weather such as lightning, wind, or hail.
Let's dive deeper into Homeowners Insurance.
Excluding the cost of the land, you need to have enough insurance on your dwelling to cover the cost of rebuilding your home at the current reconstruction costs. Reconstruction costs can vary from year to year so it is also very important to review your policy at each renewal to be sure you are adequately covered.
Dwelling coverage protects your home against theft, vandalism, fire damage, wind damage and so on. Dwelling coverage does not cover your personal belongings. There are two different forms of dwelling coverage. Replacement Cost coverage means you are covered up to the replacement cost value of your home. This means the insurance company will pay up to the amount listed on your policy to rebuild your home. Actual Cash Value coverage means the insurance company will only pay you the actual cash value of your home at the time of the covered loss.
This coverage will cover your personal property when it's inside your home. It covers the repair or replacement of your personal property in the event of a covered loss up to the coverage limits. You can also increase your coverage on certain items that might be particularly expensive such as jewelry and art (appraisal and receipts may be required).
Liability coverage protects the homeowner and guests from personal injury and property damage claims against them by third parties if an accident were to occur on their property.
Additional living expenses coverage provides coverage if you, the homeowner, must temporarily relocate from your home due to a covered loss. This coverage helps with expenses of temporary relocation.