The Coverage Provided by a Homeowner’s Policy of Insurance

What Does Homeowner’s Insurance Cover?

For most people, the purchase of a home is the single largest investment they ever make. Most homeowners lack the resources to cover any significant damage to their home—that’s the purpose and function of homeowner’s insurance. But you have to be careful when you buy a policy to protect your house. Not all homeowner’s policies are the same.

Homeowner’s Insurance—An Overview

The most important determination you need to make regarding a homeowners insurance policy relates to the type of “peril” covered. Homeowner’s policies generally have two different types of coverage—coverage for “named perils” and coverage for “open perils.”

An open perils policy covers losses caused by any event not specifically excluded in the policy. For example, if you suffer damage due to high winds and the policy does not specifically exclude coverage for wind damage, you have a right to reimbursement for your losses.

With a “named perils” policy, coverage is allowed only for those specific types of losses named in the policy. With a named perils policy, if you suffer wind damage and the policy does not specifically provide for coverage for losses sustained due to wind, you won’t be able to recover for those losses.

Most homeowners policies exclude coverage for certain types of losses, such as damage caused by earthquake or flood. To obtain coverage for losses caused by those events, you have to purchase a separate flood insurance or earthquake insurance policy.

The Common Components of Homeowner’s Insurance Policies

With most homeowner’s insurance policies, there is coverage for:

• The principal dwelling and other structures—Homeowners policies customarily cover the cost of repairs or construction after a covered loss. This typically includes plumbing and electrical repairs, heating and cooling, and any type of structural damage, from roof repair to floors, drywall and joists.
• Loss of use of your home—If you have to pay to live somewhere else while repairs are made to your home, your homeowners policy will usually reimburse those costs.
• Personal property loss—Any items of personal property—electronics, books, clothing, jewelry, etc.— that are damaged or destroyed are usually covered.
• Injuries suffered by another person—A homeowners policy typically covers you for slips and falls and other injuries on your property.

Contact Aronberg, Kouser, Snyder & Lindemann, P.A.

We offer a free initial consultation to every new client. We are open and available during traditional business hours, but can meet with you anytime, 24 hours a day, seven days a week. We will also arrange to visit you in your home, a nursing facility or the hospital, if necessary.

To schedule an appointment, send us an e-mail or call our office at 856-429-1700.