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The Ultimate Guide to Homeowners Insurance

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A Homeowners Insurance Policy, also known as Home Insurance Policy, is the most basic level of insurance that you can purchase to protect your home and its contents in the event of an incident or accident. The cost of the policy depends on a number of factors, including the size and location of your home, as well as any special features it might have (fireplaces, pools, etc.). Regardless of these variables, it’s important to make sure that you have adequate coverage in case of theft or damage to your property. Before you continue your search on finding the best homeowners insurance companies in California, continue reading this guide to further enhance your knowledge on home insurance.

 

Types of Homeowners Insurance Policies

There are three main types of homeowners insurance policies available: HO-1, HO-2, and HO-3. Each one provides different levels of coverage for your home and its contents. You can customize each policy to meet your needs or even combine coverages from different policies if you think that’s appropriate. Here is a rundown of each policy type:

 

Dwelling Coverage

Dwelling coverage is designed to protect your house, garage and personal belongings from catastrophes such as fire, windstorms, tornadoes, theft and other events that damage or destroy them. Most people will choose between two types of dwelling coverage: actual cash value (ACV) or replacement cost coverage, depending on how they intend to use their home.

 

Personal Property Coverage

Personal property coverage protects belongings inside your home, such as clothing, furniture, electronics and other possessions that you may have. If your belongings are stolen or damaged by an insured loss (for example, fire), personal property coverage will pay for repairs or replacement costs up to your policy limits.

 

Other Structures Coverage

If you have a separate building on your property that is not covered by dwelling coverage, such as a shed or detached garage, your policy will provide coverage for it if you have other structures coverage. Your policy will also cover damage to trees and shrubs located on your property up to specified limits in most cases. However, those plants will not be covered unless they are within 10 feet of an insured building.

 

Additional Living Expenses Coverage

Additional living expenses coverage pays for your temporary housing and food, up to a certain dollar amount, if you have to leave your home during repairs. In most cases, it also covers an additional living expense while you’re temporarily without a place to live. For example, if you have a fire in your house, and you’re forced to find temporary lodging elsewhere until it’s fixed or replaced, you might be able to collect some additional living expenses coverage while that happens.

 

Loss of Use Coverage

Loss of use coverage reimburses you for additional living expenses, if you’re unable to live in your home due to damage sustained by a covered event. Loss of use coverage costs depend on where you live, but it generally covers hotel or rental expenses while your home is being repaired.

 

Medical Payments Coverage

Medical payments coverage, also known as Med Pay, is designed to pay for medical expenses that result from an accident or injury on your property. The insurance policy will typically pay up to a certain amount of money per day in order to cover any costs associated with your visit to a hospital, clinic, doctor’s office or other healthcare provider.

 

Personal Liability Protection (PLP)

Personal liability protection (PLP) covers you from claims, suits and judgments related to personal injury or property damage sustained by other people while on your property. This coverage will pay up to your policy limit, if a claim is filed against you as an individual or against your assets such as real estate or automobiles. Your PLP also includes protection for legal defense costs if a lawsuit were brought against you for property damage or bodily injury.

 

We hope this guide provided you a better grasp on what homeowners insurance policy is and what types of coverages it provides. If you need assistance in finding the best homeowners insurance companies in California, reach out to a Get-a-Quote specialist today!  Get-a-Quote is an excellent insurance shopping tool that provides you all the help you need during your insurance research journey.