A standard homeowners insurance policy typically offers four types of protection. It covers the structure of your home, its contents, the cost of additional living expenses if it becomes uninhabitable, and the liability you could incur if someone is injured on your premises or suffers property damage due to your negligence. To help you better understand your policy, Kleppinger Insurance, the leading home, life, auto, and business insurance agency in Bethlehem, PA, explains the ins and outs of each type of homeowners’ coverage below.
A Quick Guide to Homeowners Insurance
1. Dwelling Coverage
Dwelling coverage protects the structure of your house against the costs of repair or replacement should a fire, storm, or other event leave it damaged or destroyed. It includes attached garages and decks, and sometimes detached structures such as a gazebo, tool shed, or yard fence. It almost never covers floods or earthquakes; for those, you need to buy additional policies. You should purchase enough dwelling coverage to rebuild the home from scratch should it be destroyed, not just the outstanding mortgage balance.
2. Personal Property Coverage
This protects the contents of your home, including furniture, clothing, appliances, and electronics. To determine how much you need, assemble an inventory and assign replacement costs to each item. If this is not practicable, you can estimate; most people's personal property coverage runs between 50% and 70% of the replacement value of their home.
3. Additional Living Expenses
Additional living expenses coverage pays for the cost of food and lodging if your home is destroyed or becomes uninhabitable. This includes hotel room costs, meals out, and even the costs of laundering clothes you incur while the house is being rebuilt.
4. Liability Coverage
Liability coverage pays for medical and repair costs if someone suffers injury or property damage on your premises or through the fault of you or a family member. For instance, if your dog bites a neighbor, your homeowners insurance policy will pay the doctor's bill and any legal expenses, like lawyer’s fees, court costs, and settlement amounts, you incur if sued.
For peace of mind knowing you're protected even if the worst happens, contact Kleppinger Insurance, the premier homeowners insurance agency in Bethlehem, PA. They'll help you devise a policy that meets your property, liability, and budgetary needs. Visit their website to read testimonials from satisfied customers, or call (484) 357-1485 to discuss your options with a friendly expert.