Homeowners insurance goes hand in hand with owning a home. Most people dream of owning their own home. Most people are not insurance experts. Although home insurance is technically not required, most mortgage companies or lenders will require borrowers to take out an insurance policy on your new home, so when looking into an insurance policy for you home, it’s important to understand what you’re getting, what’s covered under you policy and what isn’t.
What is Homeowners Insurance?
Most people know that having homeowners insurance is a good idea. Many Wisconsin residents are uncertain about how their homeowners insurance works, or what it covers in case of and accident, emergency or natural disaster.
Homeowners insurance protects your home and your belongings. There are different types of homeowners insurance and various types of coverages. An HO3 home insurance policy covers:
- Your dwelling (Coverage A)
- Your fences, garage and sheds (Coverage B)
- Your personal belongings (Coverage C)
- Loss of use (Coverage D)
- Your personal liability (Coverage E)
- Visitor/guest medical expenses (Coverage F)
In exchange for your monthly premium (the cost of your homeowners insurance policy), your insurance provider pays for specific damages, saving you from a large bill when disaster strikes. Here’s a closer look at how your home insurance works in more detail.
What Does Home Insurance Cover?
The home dwelling coverage, personal property coverage and other structures coverage in your insurance policy will typically cover damage to your house, personal belongings, garage, driveway and shed caused by:
- Water damage from burst pipes or appliance flooding (like a dishwasher)
- Hail damage
- Lightning strikes/damage
- Theft and vandalism
- Smoke or fire damage
Even though homeowners have different priorities on what they want to have covered, depending on what type of policy you have on your home these types of incidents are typically covered.
When one of theses events damage your house, personal property, garage, shed or driveway, your homeowners insurance policy will pay for their replacement cost provided it’s covered in your homeowner’s insurance policy.
Replacement cost coverage is the amount it costs to replace your belongings or repair your home with the same or similar quality of items or materials. This will give you more flexibility when getting your life back in order following a disaster.
Home Insurance Coverages At A Glance
Coverage A – Dwelling Coverage
The dwelling coverage portion of a homeowners insurance policy pays for rebuilding or repairing the physical structure of your home caused by a covered event.
Coverage D – Loss Of Use
If your covered event claim causes your home to become uninhabitable, your policy can help pay for additional living expenses such as food, lodging and more.
What Homeowner’s Insurance Doesn’t Cover
Many people think that flood damage is automatically covered in their homeowners insurance policy, however homeowners insurance policies typically don’t cover loss or damage from:
- Business liability
- Earthquakes (generally not an issue in Wisconsin) 🙂
- Flooding
- General wear and tear over time
- Negligence and lack of proper maintenance/regular upkeep
Making sure your home is insured for damage and loss caused by flooding (especially in areas of Wisconsin where flooding is a bigger problem) is something to strongly consider.
If you’d like to better understand your current homeowners policy or learn more about what options you have, contact Eastling Insurance today and we can help you navigate through the fine print and details.
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Have A Question?
Call us today at: (920) 596-3355
Sandie (Sandra) Wilz is the owner and an agent at Eastling Insurance in Manawa, Wisconsin. She is passionate about educating clients and prospects on what their insurance coverages mean and how having the correct coverage can give the client the peace of mind they would expect from their insurance protection. Sandie can be reached at (920) 596-3355.