Homeowner's insurance is an important piece of the home ownership puzzle. Because almost all mortgage lenders require proof of insurance, having a policy is more of a necessity than an option. However, many potential homeowners aren't clear about what a homeowner's insurance policy covers. While each policy is customizable and has varying details depending on the insurer, there are a few basic commonalities to remember:
Damage to the Interior or Exterior of the House
A homeowner's insurance policy will compensate you financially for damage to your house. Damage from fire, lightning, hurricanes, vandalism and other disasters are typically included in a basic homeowner's insurance policy. However, they usually don't include flood damage, earthquakes or damage from poor home maintenance. These other situations require additional customization or even separate policies depending on where you live.
The personal contents of your home are also covered by homeowner's insurance if lost in a disaster. While this can certainly help recoup losses from damaged appliances, clothing, furniture and other belongings, there's usually a dollar limit on how much the insurer will cover.
Personal Liability for Damage or Injuries
Personal liability coverage helps protect you from lawsuits filed by other people. It covers everyone in the household, including your pets. This helps you avoid paying the bill for accidents suffered on your property in case the other party decides to sue. This part of your policy usually comes with a cap you can increase by paying a higher premium.
Temporary Housing in Case of Rebuilding or Repair
Part of your homeowner's insurance policy includes "additional living expenses" which can pay for a hotel or house rental if your home needs to be repaired or rebuilt. This part of the coverage will reimburse you for rent, hotel rooms, restaurant meals and other costs you might incur while waiting for your home to return to a habitable state. Additional living expenses covered by insurance have a daily limit you can increase by paying more for your coverage.
As with any type of insurance, homeowner's insurance is different from one policy and provider to the next. However, keep these basic things in mind as a place to start when looking deeper into your options.
About the Author
Kimberly Hering
Kimberly Hering's devotion to helping people achieve their real estate goals stems from her genuine enjoyment of the process. Whatever the task, Kimberly makes it her mission to get it done, however she can, without compromising her client's needs. Often, that means thinking outside the box. After working with Kimberly, clients describe her as being Trustworthy, Creative, Patient, Highly Skilled, Attentive to the Process and having a lot of Integrity.
After spending more than 15 successful years working on Wall Street, Kimberly transitioned into Real Estate, joining Alain Pinel Realtors, then moving to Zephyr, now Corcoran Global Living, in 2018. During her career on Wall Street, Kimberly was a Vice President working as an Institutional Equity Salesperson for Montgomery Securities for 10 years. She covered the top money managers throughout the US and Canada. She joined Jefferies & Co as a Senior Vice President managing the Western Region Institutional Sales group, while continuing to cover the top money managers.
Kimberly leverages her extensive experience selling equities to top money managers throughout the US and Canada, to successfully negotiating any Real Estate transaction seamlessly for her clients. Kimberly is well versed in Marin's neighborhoods, towns, cities, and education system.
Living in the Bay Area for 35 years, 25 years in Marin and having 2 sons in local Marin schools, Kimberly spends a lot of time volunteering in the community and serving on various local Boards. Kimberly has a collection of resources ranging from the best local breakfast spots to vetted contractors. With her reliable list of valuable resources, Real Estate experience and unsurpassed knowledge of Marin's many communities, Kimberly can guide her clients through every aspect of a Real Estate transaction seamlessly.
Relocating to Marin, downsizing, upsizing, first time home buying, final home purchase or sale, or a lot to build a dream home, no matter the undertaking, Kimberly works seamlessly until the job at hand is completed with 100% satisfaction.