You’re undoubtedly already aware that homeowners insurance covers your home and everything in it, but there’s much more to your coverage. Depending on the circumstances, your homeowners insurance may also cover a hotel stay, luggage stolen on vacation, or even a lawyer to represent you in a lawsuit. Here’s a look at some important elements that may be included in your insurance.
1. Living expenses if your home is damaged
Assume an electrical fire renders your home dangerous to live in. You won’t have to pay for a hotel or stay on a friend’s couch for months while waiting for repairs.
Instead, look into your loss of use coverage. This provision of your policy can assist you in “maintaining your normal standard of living,” according to Justin Skipton, a vice president of the National Association of Public Insurance Adjusters.
According to Skipton, your policy might cover the cost of an extended-stay hotel or a rental apartment with a full kitchen and space for children and pets. If your rental house is farther away from work or school, you may be eligible for reimbursement for additional transportation costs.
Your insurer may frequently set your spending at a certain percentage of your dwelling coverage limit, according to Alaina Hixson, director of sales and operations at The Churchill Agency in Brentwood, Tennessee.
So, if you have $200,000 in structural insurance on your home and 20% loss of use coverage, you’ll have up to $40,000 to spend toward living expenses while you’re away. There may be time constraints, such as 12 or 24 months.
Remember that your costs should be modest. “If your $150,000 house burns down, you won’t be able to stay at The Ritz-Carlton or another luxury hotel for a year while you rebuild,” says Rich Johnson, director of communications for the Insurance Council of Texas.
2. Your belongings away from home
If someone comes into your hotel room and steals your belongings while you are on vacation, your homeowners insurance may cover the cost of replacing the missing goods.
“Most insurance policies give you coverage for your personal property anywhere in the world,” according to Skipton. “But sometimes they’ll limit the amount of that coverage.”
For example, the coverage level for goods outside your home could be 10% of your total personal property coverage limit. If your belongings are insured for $100,000, you will receive $10,000 in coverage for anything outside the home.
In addition to travel, this coverage may be beneficial if you have belongings in a storage unit or a child living in a college dormitory. Check with the insurance agent or read your policy to find out what limitations apply.
Personal property coverage typically includes a deductible, which is deducted from your claim settlement. So, if someone steals your $500 laptop from a cafe and you have a $1,000 deductible, making a claim will not assist you.
3. Lawsuits and liability claims
Few homeowners expect to be sued, but if you are, your insurance provider may have your back.
Your policy’s personal liability clause protects you if a member of your household is responsible for someone else’s injury or property damage. This might include incidents such as your dog biting someone at the park or a delivery guy stumbling on your snowy front stairs. According to Johnson, your coverage can cover both medical expenditures and missed earnings if the injured person is unable to work.
If the other individual sues you rather than submitting a claim, your insurance company will typically pay to defend you in court, according to Hixson. It will also cover legal costs up to the insurance limit.
Johnson points out that some firms would not insure canine breeds that they consider violent, such as pit bulls. Liability insurance covers accidents or negligence, but not crimes or intentional injury to others.
4. Unusual Losses
Homeowners insurance even covers some oddities, such as space debris and burial plots in cemeteries.
“If a satellite falls on your home, you’re covered,” Johnson explains. This is because regular homes insurance covers damage from falling objects. Meteors and asteroids may also fall within this group.
According to Skipton, your policy may also cover headstones, mausoleums, and other grave markers for which you are liable. For example, if you purchased a memorial for your departed spouse and it was vandalized, your policy may cover the cost of repairs.
Your personal homeowner’s policy may contain even more surprises. To discover them—and to make sure you get the coverage that’s most important to you—contact your agent. Hixson explains. “Make sure you’re asking questions.”
