What does Homeowners Insurance Cover?
First, owning your own home is definitely an incredible achievement. Therefore, it is an investment in the future that you must take care of and treasure. For this reason, knowing what homeowners insurance covers is important since it helps your home to be protected against eventualities.
So, to purchase a policy, it is recommended that you take an inventory of what you own. Thus, deciding the level of coverage will be easier and you will feel comfortable knowing that your assets will be protected.
On the other hand, finding who can offer you coverage at the best price is not easy. For this purpose, we have quotation tools so that we can compare the rates of various providers for you.
Generally, the policies most requested that will help protect your home are:
First, for the structure of the house. It is very useful as it protects your home in case of fire, as well as damage caused by theft and intruders. Also, in case of any situation that compromises the structure of your house.
Insurance with civil liability coverage: Against damages that third parties have caused within your property due to your responsibility or another inhabitant of the home.
Policy for household belongings. Home insurance in California can offer a range of belongings to your home. Therefore, you have to make a report of the things you want to insure.
Without a doubt, getting coverage for those things that homeowners insurance covers is an important decision that you must take into account before any risk occurs.
What Homeowners insurance covers:
One measure of home insurance is the responsibility acquired by the company you have hired. It must respond to certain specific circumstances. For this reason, there is a limit to what the company you have hired can cover.
In short, different insurers offer various types of coverage. Finding the perfect mix of different coverage is necessary that you have prevention in any situation.
What Homeowners Insurance Covers, generally:
- Damage to the physical structure of the home.
- Structures within the property, such as storage roofs, swimming pools, boat huts, among others.
- Personal property and belongings inside the house. This applies up to certain specified limits.
- Legal liability for injuries and damages within the property, caused by you or members of your family to other people.
- Injury to your pets while they are indoors.
- Living expenses if a fire or disaster, for which you are insured, temporarily leaves you unable to live in your home.
As you may have noticed in the basic area of home insurance, a wide range of needs are covered. You can get more benefits if you use a more comprehensive policy.
For an additional fee, you can choose additional homeowners insurance coverage, which may include:
- Higher limits of liability for damage to property or structures within it and for bodily injury.
- Replacement cost of personal property.
- Greater coverage for electronic and computer equipment.
- Legal responsibility for financial losses caused by storms, fire, theft, and any other eventuality that is detailed in your policy.
Types of home insurance
There are different types of home insurance, which are adapted to your needs:
HO-1 Most basic policy
It covers some perils and insurance agencies no longer sell them in most states.
HO-2 Policy “extended form”
Covers 16 hazards, such as:
- Fire or lightning.
- Hurricanes or hail.
- Volcanic eruptions.
- Falling / falling objects.
- Civil riots or riots.
- Damage caused by vehicles.
- Weight of ice, snow, or sleet.
- Vandalism or malicious crimes.
- Damage caused by airplanes/helicopters.
- Accidental releases of water or steam from plumbing, heating, air conditioning, or fire sprinkler systems, or an appliance.
- Tears, cracks, burns. Sudden and accidental overflows from steam systems or water heaters, air conditioning systems, or automatic fire systems.
- Freezing pipes, heating, air conditioning, or fire sprinklers, or an appliance.
- Sudden and accidental damage from artificially generated electrical current (does not include losses to a tube, transistor, or similar electronic component).
HO-3 Special home insurance policy
Insures property and attached structures, as well as personal belongings and liability. Covers the risks of: theft, vandalism, protests, fire, explosions, lightning, hail, damage by vehicle and aircraft. As well as objects that fall into the property and cause damage, cracks, among others. It has a wide range of coverage and accessibility.
HO-4 Tenant Policy
Only covers personal items and civil liability. Personal belongings will be covered against the same risks as an HO-2 policy. You also have additional expenses for when an accident occurs at the property and you must stay elsewhere while the property is under repair.
HO-5 Comprehensive Policy
It is similar to an HO-3 policy but offers greater coverage for personal belongings and liability. It is usually more expensive because it is the broadest in coverage.
HO-6 Condominium Policy
It is specifically for condo owners. Financially protect property, liability, and the walls, floors, and ceiling of the home. Also, it covers the same risks mentioned above.
HO-7 Mobile Home Insurance
It is the HO-3 policy but specific to mobile home insurance or manufactured.
HO-8 Old Houses Policy
It is an HO-3 policy but with special adaptations, because old houses have different coverage needs compared to new houses.
What does homeowners insurance not cover?
It depends on the type of policy you choose, but in general terms there are several circumstances that your insurer will not take into account.
Risks Home insurance does not take:
- Laws or ordinances, such as demolition or construction required for your home to comply with the codes of the area in which you reside.
- Movements of the earth, movements seismic, sinkholes, landslides, and mudflows.
- Water damage, flooding, faulty drainage, and water seeping into the foundation.
- Carelessness because you did not take steps to save your property during or after damage.
- Wars, including declared and undeclared.
- Nuclear hazards.
- Intentional loss, that you did something on purpose with the intention of causing a loss.
- Confiscation or taking of property, either by a government or public authority.
As you can see, there are many factors to take into account in home insurance. You just have to find the policy that best suits your needs.