For example, if a guest trips on your sidewalk and gets hurt, liability insurance can pay their medical bills. This liability insurance pays for injuries and property damage accidentally caused by you to others. While it’s easy to focus on the material items like your house and belongings, homeowners insurance includes crucial coverage for liability.
You can buy more personal property coverage if you need it. For example, if your dwelling is insured for $250,000 and your contents coverage is set at 50%, you’ll have $125,000 in contents coverage. The coverage amount for personal property is usually set between 50% to 70% of the dwelling coverage amount. This encompasses furniture, clothes, kitchenware, house decor such as curtains and everything you have packed away in boxes in your basement or attic. Personal property coverage pays to repair or replace your personal belongings if they are damaged or destroyed. There’s related coverage for other structures such as a fence or unattached garage.
Dwelling coverage is not based on the real estate market value of your home. The dwelling coverage amount should reflect the cost to rebuild the house based on the construction and labor costs in your area. The dwelling section of a home insurance policy covers your house structure. It also provides liability protection and coverage for additional living expenses if you’re forced out of your home due to damage.Ī standard home insurance policy contains these valuable coverage types. Home insurance covers your house, other structures on your property like barns and fences, and your belongings.