Your house is likely your biggest and most important asset. Considering all the hard work that you poured into the acquisition or construction of that building you now call your home, it’s only right to protect it with homeowners insurance.
Here at GreatBuildz, a free service that connects homeowners with reliable general contractors in Los Angeles & Southern California, we speak to homeowners every day about hiring a contractor to repair their property damage using their home insurance policy.
As long as you have an active home insurance policy, you will enjoy coverage for the following:
Your Home’s Structure
Home insurance will pay for any damage to any part of your home’s structure, from the roof to its very foundation.
Homeowner’s insurance will also cover parts of your property that are separate from the main house, including the fence, garage, and tool shed.
However, home insurance coverage will only kick in when specific perils are responsible for the damage.
Covered perils include fire, smoke, windstorms, lightning, hailstorms, rioting, and explosions.
You cannot expect compensation if an earthquake and/or a flash flood damages your home. Check with your insurance provider to know your options if you live in a region where such disasters are common.
A standard home insurance policy will also cover the damage your belongings sustain due to a covered peril, as well as their loss in case of theft or robbery.
Whether it’s appliances, furniture, clothes, jewelry, or tools and equipment, having home insurance will ensure that you will receive compensation when they’re damaged or lost.
However, your compensation will largely depend on your policy limits, and that’s why it’s vital that you have an idea of what your policy says about the highest amount you’re eligible for in case of damage or loss of your belongings.
If you find the maximum amount too low compared to the actual value of your high-ticket items like jewelry and antiques, you have the option to buy more coverage for them.
The personal liability component represents one of the more interesting parts of a home insurance policy.
With personal liability coverage included in your homeowner’s insurance, you won’t have to worry about people filing claims for personal injury or property damage that took place inside your property.
So, if a visitor slips on your kitchen floor or gets bitten by your dog, your home insurance policy will pay for that person’s medical bills.
If your child tosses a baseball through a neighbor’s glass window, you won’t have to pay for its repair or replacement out-of-pocket, thanks to your home insurance coverage.
Should that claimant take you to court, your litigation expenses and any court-ordered settlement will be covered by homeowners insurance as well.
A standard home insurance policy usually provides liability coverage starting at $100,000. If you want higher and broader liability coverage, talk to your insurance agent about purchasing an excess liability or umbrella policy.
Additional Living Expenses (ALE)
When the damage to your home after a covered peril force you and your family to stay at a hotel, the additional living expenses or ALE provision of your home insurance policy will cover your costs, including meals. You can continue enjoying ALE coverage until your primary dwelling is deemed habitable.
To be sure about the amount of your ALE coverage, check with your insurer.
Now that you know what your home insurance policy will cover, you can finally make an informed decision about whether to purchase homeowners insurance coverage or not.
Then again, if you truly care about your home and all your belongings within it, getting home insurance coverage would be your best bet.
Even though it’s not compulsory if you didn’t use a mortgage to acquire your home, home insurance helps you prepare for the unexpected, and that is a good enough reason to have such a policy under your name.
Adding Space or Building an ADU
If you end up adding space (square footage) to your home or building an ADU on your property, make sure to discuss this change with your insurance agent. You will likely need to increase your coverage limits and/or add coverage to include your new space/ADU. If you are planning to rent out your new living space or ADU, speak to your agent about getting coverage for a landlord policy that covers various tenant issues.
When it comes to finding the best remodeling contractor in Los Angeles, Orange County, Ventura or San Diego – GreatBuildz is simplifying the contractor search. GreatBuildz is a free service that connects homeowners with reliable, thoroughly screened general contractors and provides project support from start to finish.
Call now (818.317.3567) to chat with a real person about your next renovation project or visit our website for more information: www.greatbuildz.com
About the Author:
Rachael Harper is the Content Marketing Strategist of Bennett & Porter, a wealth management and insurance firm based in Scottsdale, Arizona. When not writing, she makes use of her time reading books and playing bowling with her family and friends.