There is more to the protection of your home and your loved ones than locks and bolts on your doors and other security measures. That protection comes in the form of your homeowners insurance policy. We all know what insurance exists to protect those who have it from financial devastation in the event of an accident. But how exactly does this type of policy do that?
This article will cover (pun intended) all the things you need to know about homeowners insurance and how it can protect you, your family, your home, and your financial well-being.
The Six Types of Coverage
There are roughly six types of homeowners insurance on the market, each with different levels of coverage. Here are those six types of coverage:
- Coverage A: Dwelling. This protects you from damages to your house from covered losses, like a fire. Following a covered loss, you will be granted compensation for the repairs and reconstruction of your home, including structures that were attached to it, such as decks, porches, and garages.
- Coverage B: Other Structures. This compensates against damages from covered losses to other structures on your property, such a barn, fence, external garage, and so on.
- Coverage C: Personal Property. This is to cover damages from losses and theft of your personal belongings and possessions, such as furniture, jewellery, and so on. This coverage will help you replace items to your defined limit in your policy. As such, it is important to keep an updated inventory of your belongings when opting for this type of coverage.
- Coverage D: Additional Living Expenses. If damage results in the loss of use of certain parts of your home that will force you to live elsewhere, your temporary housing costs might be covered in this policy.
- Coverage E: Personal Liability. This is the coverage that covers damage to other people’s property due to incidents that occur on the premises of your home.
- Coverage F: Medical Payments to Others. This is coverage for injuries caused to others, such as houseguests, by accidents in your home.
Depending on your provider, you may also be able to get insurance for your appliances as an optional bit of coverage. Similarly, you may also insure specialised equipment, such as pool filters and the like.
Consider Homeowner’s Excess Insurance
It is important to remember that there might be limits imposed on your coverage, depending on the terms of your policy. Such policies also generally do not cover the costs of routine maintenance and repairs. As such, it would be best for you to consult with your provider about what incidents you are covered for.
In many cases, homeowners are recommended to take out Homeowner’s Excess Insurance. Homeowner’s excess insurance is an added layer of general protection that acts as an umbrella over your various insurance policies. Should you exceed or use up the total of your coverage in some way, as in severe cases of home destruction or theft, Homeowner’s Excess insurance will serve as an extension of that, covering you for the amount you require past your coverage limit.
It is always best to invest in preparation for any situation that you might encounter. Whatever the case may be, it is always ideal to have that ounce of prevention rather than resort to the pound of cure. Insurance is one such prevention. While it might be an added expense, it is an expense that can protect your financial well-being in the event of a grave tragedy.
If you’re looking for homeowners insurance in the UK, send us a message at Goodbye Excess. We have great policies and great coverage for homes of any size.