A homeowners’ insurance policy is designed to offer financial protection in the event of damage, but what does it specifically cover? Like other policies, the areas of coverage are based on the policy you choose. To explain in greater detail, the experienced agents at Ohio Insurance Center Agency in Cincinnati, OH, break down the ins and outs of homeowners’ insurance. 

What Exactly Does Your Homeowners’ Insurance Policy Cover?

The most obvious coverage area of a homeowners’ insurance policy is your house. Even the most basic coverage plans offer protection for at least the appraised value of your home. If fluctuations in the market have caused the market value of your home to fall below the mortgage amount, you will still need a policy to cover what you owe to the bank in case there’s a total devastation. It's important to verify the level of coverage before you choose a plan.

While a standard homeowners’ insurance policy covers the main building you reside in, it usually also protects structures, like your fence or outdoor building. Your policy should also offer personal property protection, which covers the cost of replacing your personal items, like televisions and computers. Typically, this type of coverage also provides the replacements in the event of theft.

Another common coverage area under a basic homeowners’ policy is a liability. This area of protection prevents the financial burden of medical bills or lawsuits from falling onto your shoulders if a non-resident is hurt. This injury can occur anywhere on the property, and the policy will cover the associated costs up to a specified dollar amount.

Depending on the company, there are also other areas of coverage that may not be included in a basic plan. Most policies cover some form of natural disasters, such as fire or wind damage, but not all issues associated with Mother Nature are automatically covered under basic policies. For instance, damage due to flooding is seldom covered in standard options. However, you can request to add flood insurance to your policy, but it will most likely result in a higher premium.

When choosing a policy, it's important to ask about the different coverage areas included. You can make sure your policies provide adequate coverage by contacting Ohio Insurance Center Agency. Serving the Greater Cincinnati area, the agency specializes in high-risk auto coverage, including SR-22 bond insurance. Get a free quote by calling (513) 522-6300, and learn more about the coverage options online.