When you think about home insurance, you think about protection. Most people simply cannot rebuild their home and replace all of its contents if a disaster strikes, which is why homeowners insurance is important. Here’s what you need to know about home insurance:
Contents
What is home insurance?
A homeowners insurance policy can protect your home against damage that occurs to the house itself and the belongings inside. Home coverage can protect your property, some of your belongings, and you. This is a combined policy that combines two types of coverage:
- Coverage against damage or destruction to your property due to risks such as fire, theft and windstorm
- Coverage for liability risks, such as someone getting hurt on your property
For example, if something unexpected happens, such as a fire or theft, home insurance helps you pay for the destruction and loss. Additionally, a homeowner’s insurance policy can provide liability coverage for accidents that occur on your property (including property damage and injuries sustained by guests) and may even cover certain accidents that occur outside your property.
There are numerous different types of coverage within a home insurance policy and it is important to know which type of coverage corresponds to which type of damage. Let’s be more specific.
What does home insurance cover?
Now that you know the basic definition of home insurance, it’s important to understand what a standard policy actually covers. Home insurance helps cover damage caused by hazards such as:
- Fire
- Hail
- Lightning
- Gales
- Heist
- Vandalism
Although standard policies generally do not cover other perils, such as floods and earthquakes , other coverage options are available.
What types of coverage do common policies provide?
Typically, a standard home insurance policy offers the following types of coverage:
Housing coverage
Dwelling coverage helps protect your home’s structure, built-in appliances, and wall-to-wall carpeting from damage. In the terms of your insurance policy, your “dwelling” refers to the entire structure of your home and any connected structures, such as a garage or basement. If your home is damaged by a covered loss, this will help cover any repairs or reconstruction that may be necessary.
Coverage for other structures
Other structures coverage applies to structures on your property that are not attached to your home. If an unattached structure, such as a shed, garage, or guesthouse, is damaged, other structures insurance can help cover the associated costs.
Personal Property Coverage
Personal property coverage protects personal belongings in your home, such as furniture or electronics, if they are damaged or destroyed by a covered loss.
Civil liability coverage
Liability coverage can cover costs associated with injuries sustained by guests at your property and other covered expenses arising from negligence. This could include the person’s medical expenses, loss of income, pain and suffering, and more. It may also cover legal defense fees in the event of a dispute.
Loss of use coverage
In the event that you need to move out of your home temporarily due to a covered loss, loss of use insurance will cover the additional housing and living expenses you incur. For example, if you have to move out of your home while it is being repaired or rebuilt after a covered accident, loss of use insurance would cover the cost of a temporary hotel or apartment.
See the full list of home insurance coverage options available at Nationwide.
Is home insurance mandatory?
Yes and no. Homeowner’s insurance is not required by state law, as is auto insurance. However, your lender may require that you purchase a policy and a certain level of home insurance coverage. Having homeowners insurance is an important way to protect your home and belongings from the unknown and will likely help you avoid having to pay for costly damages out of your pocket.
Home insurance allows you to protect what matters most to you. To make sure you choose the right home insurance policy, start your home insurance quote with Nationwide today.
