What is in a Standard Homeowners Insurance Policy?

What is in a Standard Homeowners Insurance Policy? Related Information:

A standard homeowner’s insurance policy contains information about the type of coverage you have for your home and its contents, which includes your clothes and personal items. The amount of coverage you have in the policy depends on the values that you attach to your home. You can choose to have market value of the home or pay a little extra for replacement cost. Replacement cost will pay out the amount of your coverage included in the policy so that you will have enough money to rebuild the house if it is completely destroyed. It also covers the repairs for partial damage to any part of the home. You can insure your personal effects, such as furniture, clothing, bedding or jewellery under the personal property section of the policy. The amount of coverage for your personal property usually 50% of the coverage you have on the home.

A standard homeowner’s insurance policy also has other basic coverage in addition to that of real and personal property. While you home is being repaired or rebuilt you will need somewhere to live. Living expenses are included in the policy that will help you pay for housing during the interim period. The amount of living expenses is usually 10% of the coverage that you have on the home. The standard policy also includes liability protection. The usual amount of for $100,000 if someone gets injured while on your property and sues you for damages. Since $100,000 is not a lot of coverage for this type of event, most people choose to pay extra for a cover of at least $300,000, but it is available up to a million dollars or more.

The liability section of the policy also pays the medical expenses of a person that is injured on your property. The injury is accidental, caused by you, another member of the family or even a pet. The usual coverage in a standard policy is $500, but you can have it for $1000 or more. This section also covers damage that one of your children under the age of thirteen does to another person’s property. The amount in this case is usually restricted to $250.per incident.

There are certain perils that are covered under a standard homeowner’s insurance policy. This means that if damage is done to your home by any of the vents listed, then you are covered. If some other event of circumstance should cause damage, even it totally destroys the home, your insurance company will not pay any money on a claim. The usual perils are: fire and lightning, wind or hail, ice and snow buildup on the roof, riot of civil commotion, aircraft or vehicles colliding with your house, smoke, vandalism, theft, breakage of glass, and freezing and breaking of water pipes. A standard policy will not pay for any accidents caused by earthquakes or floods or anything that is deemed an act of terrorism or routine wear and tear. The policy also covers any outbuildings such as sheds or garages that you may have on your property.

Included in your homeowner’s policy you can have insurance for personal property that you have stored elsewhere. This insurance is usually for theft and is called off-premises coverage. It is usually for about 10% of the coverage you have on your personal property. What most people so not realize about a standard homeowner’s insurance is that they have $500 coverage in case of unauthorized use of your credit card. Trees, plants and shrubs are also covered, usually up to $500 per item for all the perils listed on your policy except wind or disease.