What's under the roof?

Understanding Home Insurance

Photo by Tom Thain on Unsplash

DID YOU KNOW?
Most standard homeowners insurance policies include four essential types of coverage:

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Structure
This coverage will repair or rebuild your home if it is damaged or destroyed by:
Fire
Hurricane
Hail
Lightning
or Other Disasters listed in your policy**.
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This can also cover detached structures such as a garage, shed or gazebo, but be sure to check with your agent about this. 
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**It will not pay for damage caused by a flood, earthquake or routine wear and tear. 

"Purchasing enough coverage to rebuild your home is generally a good rule of thumb when buying coverage."

Belongings​
Your furniture, clothes, sports equipment and other personal items are covered if they are stolen or destroyed by fire, hurricane or other insured disasters.
The coverage is generally 50 to 70% of the  insurance on the structure of your home.
Items stored off premises as well as trees and shrubs on the premises are covered, but there can be limits on these coverages so speak with your agent to better understand them. 
High price items like jewelry, furs, art and collectibles are also covered, but often subject to dollar limits within your standard policy. To ensure these items are covered, you can purchase special endorsements or floaters to make up the difference. 
The best way to be sure that all of your belongings are well insured is to conduct an inventory and estimate their overall value. 

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Liability
Liability covers you against lawsuits for bodily injury or property damage that you or family members cause to other people. It also pays for damage caused by your pets. So, if your son, daughter or dog accidentally ruins a neighbor’s expensive rug, you are covered. (However, if they destroy your own rug, you’re out of luck.)
The liability portion of your policy pays for both the cost of defending you in court and any court awards—up to the limit stated in your policy documents.
 If you have significant assets and want more coverage than is available under your homeowners policy, consider purchasing  an umbrella or excess liability policy, which provides broader coverage, including claims against you for libel and slander, as well as higher liability limits.
Your policy also provides no-fault medical coverage, so if a friend or neighbor is injured in your home, he or she can simply submit medical bills to your insurance company. This way, expenses are paid without a liability claim being filed against you. Again, its does  NOT pay the medical bills for your own family or your pet.

Living Expenses
Additional Living Expenses or ALE pays the additional costs of living away from home if you cannot live there due to damage from a an insured disaster.
It covers hotel bills, restaurant meals and other costs, over and above your usual living expenses, incurred while your home is being rebuilt or repaired. Also if a portion of your home is rented out, ALE will cover the lost income from your tenant during this time. 

Your ALE coverage limit is separate from the amount available to rebuild or repair your home.  So your home will still be covered for your full policy amount, even if your ALE coverage runs out. 

Keep in mind that the ALE coverage in your homeowners policy has limits, so please speak to your agent to understand what your limits might be. 

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Want to know more about your current policy? Thinking about switching policies?
​ Contact  our agents at TWFG California in Fremont to speak about your unique home insurance options!

Contact Us

510-573-4745 - twfgcalifornia@twfg.com