Your home is likely the most valuable asset you own, and having the right homeowners insurance can help you keep the value of that asset. In today’s blog, we are going to discuss what homeowners insurance usually covers and what it usually does not.
Not all home insurance policies are alike. Keep in mind that as we go over different types of coverage in this blog post that you may not have this coverage in your policy. The best way to know what your policy covers is to speak with your Allstate agent. Whether you are thinking about switching to Allstate or currently have a policy and you are unsure what it covers, just give us a call and we’d be happy to go over this all with you. The team at J. Thomas & Associates are well-versed in insurance policies and can help you identify gaps in your coverage. The first step in protecting your home and family is to have insurance coverage — the second step is to understand that coverage and ensure there are no gaps. Your Houston and Sugar Land homeowners insurance agent can help with all of this!
What Most Homeowners Insurance Policies Cover
There are usually four main areas of standard home insurance that cover and protect you against different scenarios. We will go over each one of these and what is usually covered within that section below. As usual, your policy coverage may be different than what is explained below.
Dwelling Insurance
This type of coverage is what most people think of when they hear “homeowners insurance” and covers your home and any attached structures such as a garage. Dwelling coverage protects you from perils, which typically include fire and smoke damage, lightning, windstorms, falling objects, hail, theft, explosions, vandalism, and damage from a car or aircraft.
Other Structures Coverage
A policy that includes protection for “other structures” often covers sheds, detached garages, fences, and other unattached structures. This coverage will usually protect you against the same perils listed above.
Personal Property Coverage
While your physical home is most likely more valuable than all of your belongings inside of it, it is still important to have personal property coverage. This can reimburse you for items like furniture, appliances, electronics, and clothing after a covered loss. While a fire destroying your home and belongings is unlikely, remember that theft is often also covered by your homeowners insurance. That means if someone breaks in and steals your electronics, you will want to ensure that your policy includes personal property coverage,
Liability Protection
This type of coverage can protect you if someone is injured on your property and decides to file a lawsuit against you. It can cover everything from your legal expenses to the medical bills of the injured person. With some policies, this can even protect you if you cause damage to someone else’s home, such as accidentally throwing a baseball through their window.
What Standard Homeowners Insurance Does NOT Cover
Most standard homeowners insurance, no matter which insurance company you go through, does not cover floods, sewer backups, or earthquakes. There is also typically a limit to how much insurance will repay you if expensive jewelry or artwork is destroyed or stolen. So, if you have something of equivalent value to the Crown Jewels or the Mona Lisa in your home, we suggest getting extra coverage to protect these items. Talk to your insurance agent about these concerns and they will be able to find the right coverage for you.
Renting Out Your Property? You Still Need Coverage
If you are renting your home out to tenants, you should ensure that they have renters insurance to cover their own assets. However, keep in mind that renters insurance will not cover damage done to your home’s structure, and you should have home insurance on all residential properties that you own.
Other Things To Consider
- If you are having renovations or maintenance done on your house, be sure to only work with contractors who are licensed and insured. This will help protect you if they damage your property.
- Be aware that certain items, like pools and trampolines, are considered high liability risks and may require additional liability insurance should someone get injured.
- It is generally not a good idea to store large amounts of cash in your home. If this is burned up in a fire, it can be hard to prove it was there in the first place. It is safer to keep this in a bank account.
- All policies have a coverage limit and a deductible. Make sure to speak with your Allstate agent to understand how much coverage you have, how much your deductible is, and adjust your policy as your needs change.
- Consider investing in an umbrella insurance policy to cover any gaps in your other policies.
Make Sure You Are covered with Allstate Homeowners Insurance
When you purchase homeowners insurance through Allstate or any insurance company, it is important to understand what you are protected against and what you are not. Especially in our area, things like floods are not uncommon, and yet many homeowners unknowingly do not have coverage for this. Your Allstate agent at J. Thomas & Associates is happy to go over your current insurance policy and help you understand where you can cut back and where you may need additional coverage. We hope you never have to use your insurance, but we want you to have it just in case the unimaginable happens. You can receive a free homeowners insurance quote online, or feel free to get in touch with us by phone to ask about bundling your policies with Allstate to save money. Protect your home and family with homeowners insurance today!
