Even at the best of times, home insurance can be frustrating and, let’s be honest, confusing. If you’re looking for a simple guide that will help you get the “nuts and bolts “ of your home insurance policy, you’ve come to the right place.
This is your simple, straightforward explanation of home insurance.
Property coverage
This part of the policy refers to your actual home itself. Any damages to your home will be covered up to a certain dollar amount (the coverage limit). This means that if you needed to rebuild your home after severe damage, the coverage limit is the maximum amount your home insurance policy would pay out.
Most policies term this as replacement cost coverage. There are other options, however, which your agent can explain to you!
Is property coverage the same thing as personal property coverage?
It’s important ot note that property coverage is different from personal property coverage. Personal property coverage is the items that you have in your house — your stuff, in other words. Your home insurance policy covers electronics, furniture, appliances, and more.
Some policies also cover these personal items if they are destroyed or stolen when they are outside of your home.
Other structure coverage
If you have a shed, garage, fence, or other external structure, this is the section in which it is covered. The coverage limit for this is going to be limited, and your agent can explain that to you in clearer detail with your property in mind.
Loss of use coverage
If you were to lose access to your home due to a fire or some storm damage, home insurance policies also cover this. This includes hotel stays, rental housing, food, and other similar costs. Not every event is covered, however, so make sure you know what is included and what isn’t! One such event is flood as that would be covered under flood insurance so be sure to look into that especially if you live on the Gulf Coast of Texas!
Personal liability coverage
If you were to have someone over to your house and they hurt themselves or damage their property, you are responsible for these costs. Liability coverage would cover you if someone were to file a claimfor medical expenses or a legal proceeding.
Windstorm and hail coverage
Texans are more than familiar with windstorms and hail damage. This is an extra insurance option you can add on to your policy that refers specifically to damage caused by windstorms and hail.
This is not automatically added to your policy; it is a separate kind of coverage that you would speak to your agent about and add on. This is a good idea for Texan homeowners!
Additional coverage
There are also optional coverage choices for high-value items in your home, such as fine art or expensive jewelry. Similar to hail coverage, it is an option you’ll want ot discuss with your agent.
When in doubt, reach out
If you aren’t sure that you have the coverage you need, or you are uncertain what your deductibles and coverage limits are for your home, your local agent is the best person to talk to. They’ll go over your policy with you and help you do what you can to keep your property safe. You can also reach out to Paula Smith Insurance at 281-488-8880 for a free quote or any home insurance questions you may have.