Although homeowners insurance is not legally required in most states, your lender will almost certainly require it to protect their investment. However, there are many good reasons besides that to purchase coverage. To help you understand the benefits, here are a few of the different types of home insurance coverage and what they offer.
5 Different Types of Homeowners Insurance Coverage
1. Dwelling Coverage
Dwelling coverage protects the structure of the home. If it should be damaged or destroyed by fire, storm, falling objects, vandalism, or some other perils, your insurer will pay for repairs or replacement. This covers damage to walls; ceilings; floors; windows; the roof; and plumbing, electrical, and HVAC systems.
2. Personal Property Coverage
Homeowners insurance also protects the contents of your home, including furniture, appliances, clothing, electronics, and more. Note that if you own any high-value items such as artwork or jewelry, you may need to have them appraised and call them out on the policy. You may even need to insure them separately, depending on the insurer.
3. Liability Coverage
This pays for medical treatments and repairs if you should accidentally injure someone or damage their property. For instance, if a passerby should slip and fall on your icy driveway, your dog should bite a neighbor, or your child should throw a baseball through the neighbor's window, liability insurance pays for the damages and any legal costs arising from the situation. It does not cover intentional acts, however.
4. Medical Payments Coverage
While liability insurance pays for medical treatment for injuries deemed your fault, this covers medical costs for injuries experienced by guests on your property, regardless of fault. Note that it does not cover members of the household, only visitors to your home.
5. Flood & Earthquake Insurance
Most homeowners insurance policies specifically exclude damages caused by floods, earthquakes, mudslides, and sinkholes. If you want protection against these hazards, you will have to pay extra to add them to your policy. Be aware of this if you live in a flood plain or an area where earth movement is common.
To speak to a friendly agent about your homeowners insurance options, contact Barron Mutual Insurance Company in Barron County, WI. They are an independent insurance agency that's been serving the region for more than 120 years. They carry everything from home and mobile home to farm and renters insurance. Visit their website to learn more about their services, or call (715) 537-5141 to request a quote.