Does Your Homeowners’ Insurance Policy Provide All the Protection You Need?

When the wind kicks up and the rain comes down in buckets, you can look out your window with peace of mind that your home is insured. Although insurance cannot protect your house from damage, it should help you repair or rebuild if anything happens.

What’s Covered?
It seems like a basic concept, but coverage under your homeowners’ policy can be tricky. If you have a detached garage or other buildings on your property, they might not be covered in your primary policy. Other structures that are not attached to your house, like fences or walls can also fall outside of your homeowners’ policy.

Your personal possessions, all the items inside your house, are probably covered, but at what value? If someone stole the 60-inch TV off your wall that you bought three years ago, how much would the insurance company give you to replace it? If your house was a total loss in a fire, would the insurance pay-out be enough to replace your valuable artwork and grandma’s jewelry you inherited last summer?

Are You in Peril?
Most homeowners assume that if something happens to damage their property, insurance will pay to repair or replace it. Typical homeowners’ insurance policies are more specific than that. Losses caused by fire, theft, smoke, explosion, windstorm or volcanic eruption are generally covered.

Perils that are usually not covered under a basic homeowners’ policy include flood, war, landslide, sinkhole and earthquake. If you would like to be protected against losses in these situations, you’ll need additional coverage.

How about liability?
Insurance may also protect you if you are at fault for someone else’s injuries. If the neighbor kid is bit by your dog, the handyman falls off your roof or a stranger trips on your front door step, there could be big medical bills to pay. You may be held responsible for these injuries, but will your homeowners’ insurance pay the damages?

Liability coverage can get complicated. Can you really be held responsible for all injuries sustained on your property? What exactly can you expect your insurance company to pay for? Start by reviewing your homeowners’ policy with your agent and asking some what-if questions.

Once you have a basic homeowners’ insurance policy, adding coverage is relatively inexpensive. Almost anything can be insured with an additional rider, extension of coverage or an umbrella policy. Insurance should ensure that you will not face financial hardship as a result of an emergency on your property. Make sure you have the right coverage for your specific needs.