title:A Typical Homeowners Insurance Policy Has Four Key Ingredients

author:Robert Michael
source_url:http://www.articlecity.com/articles/business_and_finance/article_7653.sh
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date_saved:2007-08-23 17:04:56
category:business_and_finance
article:
A typical homeowners insurance policy has four key ingredients. They are:
1. Homeowner insurance coverage for your home itself

2. Homeowner insurance coverage for your family's personal items

3. Homeowner liability coverage

4. Coverage for the expenses of temporary living should you have to vacate your
home because of fire, flood or other disaster covered by your homeowner policy.
The portion of the homeowner coverage for your home itself provides funds for the
repair or reconstruction of your home if it has been damaged or destroyed by
disaster such as hurricane, hail, lightning, fire or any other covered event. What
is not covered with a standard homeowner policy is normal wear and tear on your
home or damage caused by an earthquake or flood. (There are homeowner policies that
cover these, but they are more costly and in some regions, such as flood prone
areas they are not available at all.)
When you take our your homeowner policy you'll want to be sure and buy enough
coverage for total reconstruction of your home
Most standard homeowner policies also protect structures on your property although
detached from your home, such as in-law quarters, garage or gazebo. It's common
practice to cover these unattached structures for ten percent of the covered value
of your house.
Should any of your clothing, electronic equipment, furnishings, or other personal
belongings be destroyed by insured disaster, or stolen, they are covered by your
homeowner policy. Most carriers cover them at the rate of 50-70 percent of the
total dollar figure of your home structure's coverage.
There is also a clause in your homeowner policy for coverage of off-premises items.
Which means that if you take your personal belongings elsewhere and they become
lost or damaged your homeowner policy will generally reimburse you at least ten
percent of the amount of coverage that you have on them when they are on your home
premises. Homeowner policies also provide up to $500 of protection against
unauthorized credit card use as well.
For high priced items like jewelry and fur a standard homeowner policy will usually
limit your coverage to $100-$2000. You can purchase coverage up to appraised value
for an additional charge. In either case there is no deductible and coverage
includes your accidental loss of the items.
Foliage around your home such as trees and shrubs also come under the protection of
your homeowner policy. Usually the money figure is five percent of the home's
insured value, but up to $500 for each bloom. They are protected against even
riots, vandalism, explosion and airplane crashes. They are not insured against wind
or disease damage.
Liability coverage protects you against litigation should anyone or anything become
injured on your premises. You are also covered for damage done by your children or
pets to the property of others as well. This coverage is in force even if you are
not in your own home or on your own property. It covers any court defense as well
as any court appointed financial award against you. The coverage limit is generally
more than $100,000, although a $300,000 minimum is a standard recommendation.
Your homeowner policy also takes care of living expenses if you temporarily have to
vacate your home because of damage and during repair and reconstruction of your
home. Coverage includes hotel costs, meals in restaurants and other common
expenses. Coverage limit of 20 percent of your home's insured value is common for
this. If part of your home served as rental property your homeowner policy will
also reimburse you the amount of the rent that you are losing because of the
disaster.
About The Author
Robert Michael is a writer for Domus Property which is an excellent place to find
property links, resources and articles. For more information go to: " title="<a
href="http://domusproperty.com" class="hft-urls">http://domusproperty.com</a>>"
target="_blank"><a href="http://domusproperty.com" class="hft-
urls">http://domusproperty.com</a>>.

This article was posted on October 10, 2006

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