Remember to buy enough coverage to rebuild your house in case it is damaged or destroyed by fire, hail, hurricane, lightning, or other disasters stated in the policy. Included in the insurance are detached structures such as a garage, tool sheds, or even a gazebo. But a standard policy will not provide coverage in cases of flood, earthquake, or wear and tear over the years.
The personal belongings covered in a standard policy are furniture, sports equipment, clothes, or any items listed. You can claim from 50 to 70 percent of the insurance if they are destroyed due to fire, hurricane, other listed insured disasters or are stolen. Check with the insurance company how much you can claim for personal properties; some allow only 10% and others cover even unauthorized use of credit cards. Aside from personal belongings inside the house, trees, plants, and shrubs are included in standard home insurance, except for diseased or poorly maintained ones.
Liability protection covers you against lawsuits from bodily injury or damage to property caused by you or any family member including your pet/s. If your child or pet accidentally damages a personal belonging of a neighbor or visitor, the policy pays for these types of liabilities. It includes the cost of defending you in a court and any court awards to the amount stated in your insurance. If a friend, visitor, or neighbor is injured in your home, they can claim reimbursement of their medical bills with your no-fault medical coverage. Just submit medical bills and proper documents to your insurance company without going through a liability claim against you. If you want higher liability coverage, then you can opt for an umbrella policy that provides more expansive coverage and higher limits.
Additional Living Expenses (ALE)
This coverage includes the expenses you incur if you can’t live in the house due to damages or destruction of property from any of the listed disasters. The living expenses included are hotel bills, restaurant meals, and other expenses over and above the usual living expenses accumulated while the home is being rebuilt. Keep in mind there are limits such as time limitations. ALE is separate from the amount available to rebuilt or repair the house. Again, check your policy on the limitations. For owners renting out their properties, ALE covers the rental income collected if there was destruction or damage.