What Does Standard Homeowners Insurance Cover?
Insurance-Savvy Homeowners Can Save Money & Headaches By Knowing Their Coverage Details
Don’t leave any holes in your bucket. No two Michigan homeowners are exactly alike, so standard insurance plans might leave you vulnerable in the case you need to file a claim. Understanding your potential weaknesses will help you land on your feet and avoid further distress in any scenario.
The 5 Major Coverage Points of a Typical Homeowner’s Policy:
- Dwelling: protects against the damage or destroying of a home against disasters listed in your policy (floods and earthquakes are not covered). Typically settled on a replacement cost basis, which means your insurer will pay to replace, repair, or rebuild your home to its original condition.
- Appurtenant Structures: other structures on the property are usually covered for up to 10% of the dwelling amount (i.e. sheds, garages, pools).
- Personal Property/Contents: furniture, clothes, personal items, etc. are covered against insured disasters listed in your policy – coverage amounts vary, and are usually settled on an actual cash value basis.
- Additional Living Expenses (ALE): if you and/or your family are displaced from your home during a disaster, you are likely covered for additional expenses up to 20% of the insurance on your house. ALE includes hotel or apartment bills, restaurant meals, and even lost rent if you lease rooms in your home; during the time you are away.
- Remember your policy may have time limits – and like most any area you’d like to bulk up coverage for, there is probably a premium you can pay to increase the amount of ALE.
- Liability & Medical Payments: if you, your family, or your pets cause bodily injury or property damage to another party – liability covers against lawsuits in these areas.
- This part of your policy pays for the cost of representing you in court, and any awards that come out of the hearing – up to a certain limit. Standard limits begin at $100,000. Talk to your insurance professional about what level of liability is right for you. Excess liability policies are available to expand your coverage.
- If your backyard wrestling match goes awry, and a friend (or foe) gets injured – your policy pays for immediate care, ambulance charge, first aid, etc. of any injury that occurs on your property.
In any area you feel exposed to risk, there is likely an additional premium available to increase your coverage. Like a medieval warrior adding armor to his suit – you can always upgrade your policy to fully protect your family, your assets and your mental peacefulness.
Talk to Compass today about finding the perfect policy for you and your family, or switching insurers to find a better rate. We work closely with 17 top-rated insurance companies to cover your from every angle, at the most affordable rate we can find.