What Types of Damage Does Home Insurance Cover?

Home insurance
While every home needs to have at least the basic amount of home insurance coverage, you may need more depending on your home, property or lifestyle. To be able to make the right decisions regarding how much coverage you need, it’s important to know what kind of damage you are already covered for. The following is a list of the most basic types of home insurance coverage that are offered in standard policies.

Dwelling Coverage

The most obvious form of home insurance coverage is for the dwelling itself. Insurance will cover the cost of rebuilding or repairing your home in the event that it is damaged or lost due to wind, hail, lightening or fire. Depending on the insurance policy, you may not be covered for damages that come from earthquakes or floods, so you may need to have it added if it’s relevant to you.

Coverage for Other Structures

Detached garages, granny flats, sheds and fences are typically covered under most standard home insurance policies should they be damaged and need repair. You need to check with your policy to find out how much is actually covered, because the typical coverage for these other structures is generally only around 10 per cent of your dwelling coverage.

Personal Contents Coverage

Most home insurance policies will cover the cost of replacing your possessions if they should be lost or damaged during a natural disaster or if they are stolen. Typically, 50-70 per cent of your dwelling coverage will be provided for damaged personal belongings, but you can always choose to add more coverage depending on their value.

Loss of Use Coverage

Included with your home insurance policy should also be Loss of Use coverage. This protects you if you home is destroyed or damaged and you and your family need to live elsewhere during repairs. In general, you will get reimbursed for a hotel, restaurant and any other expenses that result from your home being uninhabitable.

Personal Liability Coverage

Personal Liability coverage comes as part of the standard home insurance package and protects you and your family members against lawsuits. For example, if you dog bites someone or your mail carrier trips on a loose step and hurts themselves, then you will be protected if they sue you for damages. There are many reasons why you may want to get more coverage, however, such as if you have a back yard swimming pool.

Medical Payment Coverage

This section of a standard home insurance policy will help to cover medical costs if someone should be injured on your property and they don’t want to sue. For example if the mail carrier trips on your loose step and injures themselves and don’t sue, then you can help cover their medical costs through your home insurance policy.

Some Things That Aren’t Covered

While it’s important to know what is covered in your insurance policy, it’s also important to know what isn’t. Most basic plans don’t cover earthquake losses, mould removal, flood destruction, pest infestation or destruction caused by a pet. Remember that home insurance policies are generally quite flexible, and you can always add additional coverage where you think you might need it.