When purchasing a home insurance policy, you need to make sure you have the right type of home insurance for your house. In addition to your covering your personal items, this includes protecting the structure of your home and making sure you have liability to protect against someone getting injured on your property.
Here’s how to determine the basic amount of coverage you need as a homeowner, plus which additional coverage options will provide the best homeowners insurance.
Basic Home Insurance Coverage
For the most part, you need certain basic coverages to get the best homeowners insurance. While most of the following coverage types come with a standard home insurance policy, you choose how much coverage you want to purchase based on the value of your home, personal belongings, and other assets.
Main structure: Main structure coverage pays to repair or replace the main structure of your home. You should also consider purchasing additional main structure insurance to replace the full value of your home, which depends on a few factors, including:
- Construction costs in your area
- Square footage of your home
- Type of materials used in construction
- The style of house
- The number of rooms
- The roof type and material
- Any special features, such as a fireplace
- Any custom features within your home
- Any improvements to your home
Additional structure: You must also purchase insurance to cover any additional structures on the property your home is built on; many home insurance policies usually give a small amount of coverage. Structures covered under this type of policy include:
Personal belongings: Many home insurance policies provide a certain amount of personal belongings protection, though you should consider purchasing additional protection for more expensive items.
Liability: Liability coverage protects you and your assets if someone gets hurt on your property. This is especially useful if the injured party decides to take you to court. This type of coverage also pays out if you or a family member damages someone else’s home, such as breaking a window with a baseball.
Additional expenses: Additional expenses coverage kicks in when you must stay somewhere else while your home is being rebuilt or repaired. This should cover any rent and other living expenses, though you should consider additional coverage if you feel your current amount is inadequate.
Additional Coverage Options
Besides the basic coverages listed above, you can also purchase additional insurance types to cover a variety of perils and secure the best homeowners insurance.
Water backup coverage: While a standard home insurance policy does cover damage from rain and other weather-related damage, it does not cover water damage sustained from a burst pipe, backed up drain, or other plumbing issue. In addition, this coverage can also help pay for water removal following a backup.
Enhanced dwelling coverage: Enhanced dwelling coverage provides additional coverage for your home and helps protect you if you encounter a spike in the cost of construction. A rise in construction costs following a wide-ranging natural disaster in your area represents a perfect example of how enhanced dwelling coverage can offset any extra costs you might encounter.
Scheduled personal property endorsement: While personal belongings coverage helps to protect the items within your home, it does not provide protection for highly valuable items. For this you need to purchase a scheduled personal property endorsement of an adequate amount for specific valuable items that you own.
Umbrella insurance: This represents additional liability insurance designed to help protect you from litigation. Umbrella insurance protects any assets that you might own outside of your home, such as a car, work of art, or other high-value item. In a personal injury lawsuit, plaintiffs can seek those assets as part of damages against you if they get injured on your property.
It’s important to make sure that you have an adequate amount of home insurance to cover your property and any assets you own, as well as to pay for any medical costs arising from injuries that occur on your property. If you have doubts as to how to get the best homeowners insurance, consult with a trusted agent before purchasing a home insurance policy.