Homeowners know that they need insurance; however, many homeowners do not know what exactly is or isn’t covered under their homeowner’s insurance policy. Generally, there are four categories of coverage for a home, including:
- Dwelling coverage – The house itself, the structure, is considered covered when your home is damaged in a covered peril such as hail, fire, lightning, tornadoes, etc. Your dwelling coverage should be enough to cover the cost of rebuilding your home in the event it is completely destroyed.
- Personal property coverage – This is also known as contents coverage and it includes your possessions inside your home such as furniture, electronics, appliances, and clothes. You may decide to purchase more coverage depending on the value of your personal belongings. Every homeowner should have an inventory list with photos and receipts to help prove ownership in the event of a natural disaster or loss.
- Other structures coverage – This coverage will pay for rebuilding an additional structure on your property including sheds, detached garages, and other detached buildings that were damaged by a covered peril.
- Loss of use coverage – When a loss occurs due to a natural disaster, this insurance provides coverage for your living arrangements—hotel, restaurant, and other expenses—while repairs to your home are being made.
Insurance policies differ from state to state due to weather events and will list what is covered under the policy or what is excluded from the policy. Most homes are covered for the perils of lightning, hail, windstorm, fire and smoke, theft and vandalism, riot and civil commotion, explosions, and damage caused by aircraft and vehicles.
Weather-Related Property Damage Coverage
- Flood – Most property insurance excludes losses resulting from flood damage. This means that you have to purchase a separate flood policy to be covered for flood losses.
- Earthquake – Losses resulting from earthquakes are generally excluded, as separate policies are required to provide coverage against property damage caused from earthquakes.
- Tornadoes – Most homeowner’s policies provide coverage for losses caused from tornadoes, straight-line winds, and hurricanes. However, some areas that are prone to hurricanes may require separate policies.
- Wildfires – Insurance policies provide coverage for damages and losses resulting from fires.
For help receiving a fair settlement from the insurance company after a loss, call the Voss Law Firm at 888-614-7730 for a free legal consultation with a first-party insurance lawyer and also request a free copy of our book Top 10 Mistakes You Cannot Afford to Make When Filing Your Insurance Claim.