4. loss of use
what it is: If you are unable to live in your home due to a covered loss, this portion of the policy pays additional living expenses while your home is restored.
How Much You May Need: Loss of use coverage is generally based on your home’s coverage and is calculated at about 20% to 30% of the home’s coverage limit.
5. personal responsibility
what it is: This helps protect you if you or members of your household are responsible for causing bodily injury or property damage to others.
How Much You May Need: Many homeowners insurance policies provide a minimum of $100,000 in personal liability coverage, meaning the insurance company can pay individuals up to that full amount. injured per incident. if you think you need more protection, higher limits are available. You can also purchase an additional or excess liability policy if you think you need additional liability coverage. A suggested “rule of thumb” is that you should have enough liability insurance to cover the full value of your assets at risk. Your vehicle, money in a bank account, and some investments could be at risk if someone sues you and you don’t have enough insurance.
6. medical payments
what it is: This helps pay the medical bills of a visitor who is accidentally injured while on your property. The insurance policy only pays up to the policy limits shown on your policy for covered claims. Your policy limits refer to the amount of homeowners insurance you purchase and are usually found on the declarations page of your policy. if you incur damages that exceed your policy limits, you are responsible for the rest.
How Much You May Need: Many homeowners insurance policies provide a minimum coverage of $1,000 per person. higher coverage amounts may also be available.
Here are some typical types of “supplemental” coverage you may want to consider purchasing based on your individual needs:
- Additional Replacement Cost Coverage: This coverage may make available an additional amount above the limit of your homeowners coverage to help repair or rebuild your home if the homeowners coverage housing in your home is not enough to cover the cost of repairing or rebuilding after a covered loss.
- Personal Property Replacement Coverage: Provides coverage for personal property losses as the cost to replace the item at the time of loss, with no deduction for depreciation.
- Special Personal Property Coverage: This coverage for personal property or contents may provide additional protection ample for your possessions in the event of a covered loss. may cover your personal property in more situations than your homeowners policy does.
While homeowners insurance seems complex, it can be easier to digest when broken down by coverage. Keep in mind that all homeowners policies are not identical, you’ll want to understand what an insurance policy covers before you buy.
learn more about traveler homeowners insurance products, or if you’re ready to take the next step, click here to get a quote or find an agent.