Insurance policies for typical homeowners offer coverage for damage caused by fire, lightning, windstorms and hail. However, it's important to know that homeowners insurance doesn't cover all natural disasters. For example, damage caused by earthquakes and floods is generally not covered by homeowners insurance. Founded in 1976, Bankrate has a long history of helping people make smart financial decisions.
We've maintained this reputation for more than four decades by demystifying the financial decision-making process and giving people confidence in what actions to take next. Some insurers include identity theft coverage as part of standard homeowner policies, but most offer it as an optional coverage that you can add for an additional cost. This coverage could help pay for expenses after your identity is stolen. Identity theft coverage can pay for legal fees, lost wages, and notarial costs related to restoring your credit.
According to the United States Veterinary Medical Association, more than 4.5 million people are bitten by dogs every year. A dog bite is a serious injury and can result in expensive medical and legal bills. Pets can also harm people in other ways, such as knocking someone down. If your pet injures someone, your liability coverage could help you pay medical bills and legal fees if you are sued.
However, not all companies automatically cover pet liability. Some exotic dog breeds and pets are generally excluded from coverage. You may want to confirm with your insurance company if liability coverage for pets is included in your policy. If you want to add a coverage option to your home insurance policy, such as protection against identity theft, you can start by contacting your insurance provider to see if they offer the coverage you're looking for.
You may simply be able to add the option to your policy. If you can't get the coverage you want with your current company, you may consider changing your insurance provider. Homeowners insurance generally covers a wide range of potential damages. Your actual physical home must be covered, as well as some other property structures, such as a garage, fence, driveway, or shed.
However, if you run a business on your property in a separate structure, you're generally not covered by homeowners insurance. An example of this would be if you were selling your house and moving out, taking all your belongings and furniture with you. Other types of policies include HO-4 insurance for renters, HO-6 for condominium owners, HO-7 for mobile homes, and HO-8, a rarely-used type that provides limited coverage for older homes. And if you have a higher net worth, you should also look for supplemental insurance to protect everything you've worked for.
Different policies cover different structures, so make sure that your property structures are actually covered in your policy. If you have any questions about your home insurance coverage, your insurance company or agent should be able to help. The best way to determine the specific coverages included in your home insurance policy is to discuss your coverage with your insurance company. You would pay your share of the repair cost, known as a deductible, and then the insurer would pay the rest, up to the limit of your home's coverage.
If you're frequently entertained, have children who like to host pajama parties, or if your home has a potentially dangerous element, such as a pool or trampoline, you might want to consider increasing your liability coverage. HO-3 insurance policies generally cover damage to your home for any cause, except those that the policy specifically excludes, such as an earthquake or flood. Choosing a high deductible can significantly lower your homeowners insurance rate in some cases, but that also means you'll have to pay more out of pocket if a claim is filed. Nor will you pay for injuries or damage caused by a car accident (your liability insurance will cover them).
Most homeowners insurance companies will cover the cost of repairing or replacing the foundation if your policy covers the cause of the damage. Almost all types of homeowners insurance policies offer the same basic coverage, but the amount reimbursed to you in a claim depends on the level of coverage you have. Taken together, these coverages can help pay for damage to your home and personal belongings, unexpected temporary living expenses after a disaster, and legal and medical expenses. .
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