With the excitement of a new home comes the need to protect it. That's where your homeowner's insurance comes in. Choosing the right policy and coverages can give you peace of mind knowing that when disaster hits, you will be prepared for it. So what types of coverages should you have on your policy to best protect your home?
Dwelling Coverage
The primary portion of your insurance coverage, and usually the highest coverage amount, is dwelling coverage. Dwelling coverage essentially ensures the structural portion of your home including floors, roof, walls, attached garages, and any appliances that are attached. This coverage is used to rebuild your entire home, or parts of your home, after major damage.
Content Coverage
Another important coverage to have on your policy is coverage for the contents of your home. This includes items like furniture, clothing, and electronics that are typically in your home. Your items will be covered for events such as fire damage and some policies even offer protection for accidents.
Personal Liability
Personal liability is an essential component of homeowners insurance coverage. It provides protection for bodily injury that a guest in your home or someone on your property may have suffered, such as a slip and fall. Dwelling coverage, content coverage, and liability are all homeowners insurance requirements if you have a loan against your home. Your lender will inform you of the required amounts you need to carry for each to meet with their minimum requirements.
Optional Coverages
While the three coverages above are the primary types of coverages you should carry, they do not cover everything in your home, or every event that can cause damage. Some optional coverages you should carefully consider include:
- Flood insurance - This protects your home and belongings from flood-related damages and is essential in areas with heavy rains.
- Replacement cost plus - If your home is older, or might have depreciated over the years, you may want to consider this option which will provide you with additional coverage if you need to rebuild.
- Other structures insurance - If you have property that is not physically attached to your home, such as a shed, pole barn, or unattached garage, you will need to add this coverage on to protect them in the event they are damaged.
- Additional Jewelry Coverage - Most insurance policies will cover a small portion of the jewelry in your home, usually around a couple of thousand dollars. If you have a significant amount of jewelry, or some expensive pieces in your collection, it would be wise to get this added coverage.
Understanding which insurance coverages are right for you is vital to make sure that you can get through a disaster with little loss. Unfortunately, many homeowners don't find out they are not covered until it is too late. Always be proactive and discuss with your insurance provider all your options to determine which policies will fit your home and your life. Want more information on policy coverages to help you protect your home? Contact We Florida Financial today.
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