Protecting your home isn’t just about having weapons or knowledge or some sort of martial art. It’s about a home insurance policy that you can trust to have your back if a disaster strikes. However, what good is a home insurance policy if you aren’t sure what you’ve got in it? Below, we’ll cover the most common terms in a home insurance policy that you should know for your own protection! Take a look.
The types of coverage on your policy
As you may already know, there are more things than just your home’s structure covered in your home insurance policy.
In your policy, your home is called “dwelling.” This protects your home from fires, storms, and damage from appliances. Sheds, garages, etc., are considered “other structures,” and your policy will cover repairs to those if there is a storm or fire that damages them.
Also covered is “personal property,” which is your possessions in your home and garage. There are often caps on the amount covered, though.
Rider, floaters, and endorsements
If you want more coverage on a few things in your home, you can get a “rider,” “floater,” or “endorsement.” These are specified coverage for that specific item that covers a higher value. For example, fine artwork, high-end jewelry, or expensive furniture.
An all-risk policy
Another term you may see on your policy is having an “all-risk” policy as compared to a “named peril” policy. The former term is the most popular one, and it refers to having coverage from any risk other than what is not excluded from the contract. The latter term refers to having protection from only specific, listed risks. If you want the best value for money and peace of mind, an all-risk policy is the best choice!
Personal liability
This protection is specific to situations where you are found liable (aka responsible) for a lawsuit involving your home, property, or pets. For example, if a dog bites a neighbor’s child or a visitor falls on your front steps and breaks their leg. There is a specific amount that your policy will cover and can include legal costs.
Loss of use
Certain policies also include a “loss of use” coverage, which would include hotel stays, restaurants, etc., if you have to stay elsewhere while your home is being repaired due to covered damage.
These terms matter
It makes sense that you will want to know that you have the right kind of protection possible. Understanding these terms gives you the first stepping stone to that. With this understanding in mind, you can take a look through your insurance policy and understand a bit more just what you are reading.
If you want extra assurance, consider giving your local insurance agent a call and have them walk through your policy with you. Your lesson from above will help in that situation, too!
Now that you know the important terms in your homeowner’s policy, the only thing left to do is put it to use and see what a difference it makes! Of course, we don't expect you to remember it all, that's what we are here for. It's just that it is helpful if you understand it enough and we can share with you the more indepth side of things when needed. Contact Harbour Insurance Services at (281) 520-4090 for a free quote or info about your policy.