Home Insurance Coverage Tips
New York City and the surrounding areas have had a lot of snow this year causing significant damage to homes. This has led many homeowners to re-evaluate their home insurance coverage for next year, in case of a repeat heavy snowfall. If you are shopping for insurance for your home, it is important to understand what you will be getting when you purchase a homeowner insurance policy coverage.
A homeowner’s insurance policy is designed to provide protection to homeowners against certain risks. Unless noted, there is typically a deductible when a home insurance claim is filed. Individual home insurance policies are usually determined by named perils and exclusions in the policy.
Be sure to consult an insurance agent or company to find out what exceptions if any, may apply. Your typical homeowners’ insurance policy is divided into two parts:
· Part I: Home Insurance Property Protection
· Part II: Home Insurance Liability Protection
Home Insurance Property Protection
If you take a look at your homeowner’s insurance declarations page, which is typically the first page in a homeowner’s insurance policy, you will see Part I: Property Protection.
This part is normally divided into 4 additional sections:
· Dwelling – This typically covers the house, attached structures, fixtures such as heating, plumbing, built-in appliances, electrical wiring and permanently installed air conditioning systems.
· Other Structures – This typically covers detached structures such as the garage, storage shed and fixtures attached to the land such as patios, fences, sidewalks, driveways and retaining walls. Detached structures that are used for business purposes are not covered under this type of insurance policy.
· Personal Property – This typically covers personal property including the contents of the home and other personal items that are owned by the homeowner or family members that live with them.
· Loss of Use – This typically covers living expenses over and above the normal living expenses if the homeowner is unable to live in their home while repairs are being made, or in the event that they are denied access by a government order.
Home Insurance Liability Protection
Another look at your homeowners’ insurance declaration page will reveal another section listed as Liability Protection. This Liability Coverage section is further broken down into two parts:
· Home Insurance Personal Liability
This section provides personal liability coverage against a lawsuit or claim that results from bodily injury or property damage to others due to an accident on your property or as a result of your personal activities. This type of homeowner insurance coverage will protect the homeowner and all family members that reside in their home, but will not provide protection for auto or business related incidents.
· Home Insurance Medical Payments
This section typically includes coverage for the payment of medical expenses for individuals who are injured accidentally on your property, regardless of whether or not you are at fault. It is however important to note that medical expense payments will not apply to injuries sustained by family members residing with you or to activities relating to your home business.