What Does Home Insurance Cover?

by | Aug 8, 2023

At Bevan Insurance, finding you the coverage you need to protect your assets is our primary objective. To fellow homeowners and inquisitive minds, it’s impossible to navigate a world of uncertainties where we’re never 100% sure what could happen and get out entirely unscathed.

Picture this: a tranquil sanctuary nestled amidst the bustling chaos of the outside world. It’s not just a house; it’s a place where cherished memories are woven into every corner, where laughter and comfort thrive, and dreams unfold. It’s only natural to desire a fortress that shields this sacred space from the unexpected and provides solace during life’s unexpected twists and turns. But how do you protect that home? Enter home insurance, or “the guardian angel of home ownership.” Home insurance comes to the forefront as a safety net against the unknown.

In this blog, we will explore what home insurance can cover and shed some light on the common pitfalls that can come with choosing the right home insurance policy. From elemental calamities to unforeseen scenarios, we will cover key areas of what home insurance generally does cover, what it can cover, and how you can ensure your policy is right for you.

Does home insurance protect you?

Home insurance, like a steadfast shield, offers a comprehensive layer of protection for homeowners, safeguarding them against a myriad of risks and perils. It goes beyond mere coverage for physical structures; it extends its embrace to encompass your belongings, liability concerns, and even living expenses in times of distress.

By securing a robust home insurance policy, you equip yourself with a financial safety net in the face of unexpected events. Whether it’s a destructive fire, a devastating storm, vandalism, theft, or a burst pipe flooding your cherished space, home insurance can help you recover, rebuild, and restore what you hold dear.

Home insurance also offers liability coverage, which can come into play when accidents occur on your property or if you or any member of your household causes injuries or damage to others. This liability protection can help cover legal expenses, medical bills, and potential settlements or judgements, offering peace of mind and shielding you from catastrophic financial repercussions. 

Does homeowners insurance cover accidental damage?

It is important to note that homeowners insurance provides coverage for much more than just accidental damage. It generally includes protection against perils such as fire, lightning, windstorms, hail, theft, vandalism, and certain types of water damage. Additionally, specific coverage options or endorsements may be available for additional perils like earthquakes or floods, depending on your location and policy.

What Home Insurance (Generally) Covers

Home insurance policies typically encompass a broad range of coverage to protect homeowners from various perils and risks. While specific policies may differ in terms of coverage limits and exclusions, let’s explore the general areas that home insurance tends to address. 

Physical Damage (to Dwelling & Contents)

Home insurance generally covers the physical structure of your dwelling. This includes protection for your house itself, as well as attached structures such as garages or porches. In the event of damage caused by covered perils like fire, windstorms, or vandalism, your policy can help cover the costs of repairing or rebuilding your home, ensuring that your sanctuary is restored to its former glory.

Beyond the structure itself, home insurance also extends its reach to protect your personal belongings. From furniture and appliances to clothing and electronics, your cherished possessions are safeguarded against perils like theft, fire, or water damage. Should the unexpected occur, your policy can provide reimbursement for the repair or replacement of these items, allowing you to recover what you hold dear.

Common perils that your home’s insurance policy’s physical damage portion can extend to may include items in the following list:

  • Fire and smoke
  • Wind damage
  • Hailstorms
  • Lightning
  • Falling objects
  • Theft and vandalism
  • Water damage* (in some circumstances)
  • Land movements and earthquakes* (in some circumstances)

Liability Coverage

On top of physical protection, home insurance often includes liability coverage. This serves as a crucial safeguard against accidents or injuries that occur on your property, such as slips, falls, or dog bites. Liability coverage helps cover legal expenses, medical bills, and potential settlements or judgments, offering you financial protection and peace of mind in case of unforeseen circumstances. 

Additional Living Expenses

Home insurance can also extend coverage to if you are temporarily displaced from your property as a result of an insured loss. For example, if your home became uninhabitable due to a fire, your policy may offer additional living expenses to cover the costs of alternative accommodations, meals, and other necessary expenses while your home is being repaired ore built. Note that only necessary expenses will be covered during this time, and luxuries like fancy hotel stays, 5-star restaurant bills, etc., will not be covered.

What does home insurance not cover?

Home insurance, like any insurance policy, has exclusions and limitations. It’s important to be aware of what is typically not covered by a standard insurance policy. Common exclusions may include damages caused by earthquakes, acts of war, nuclear incidents, wear and tear, and flooding. Some high-value items, such as fine art or jewelry, can require separate coverage and will not be covered unless you have the appropriate protection. Carefully review your policy and discuss any potential gaps in coverage with your insurance provider. 

How Much Home Insurance Coverage Do I Need?

Deciding on the right amount of home insurance coverage can be a difficult task, as it directly impacts your financial security and peace of mind. While there is no one-size-fits-all answer, understanding what affects your coverage limits is integral.

A major consideration is the replacement cost of your home. The replacement cost is the amount required to rebuild or repair your dwelling to its original condition in the event of a covered loss. It takes into account materials, associated costs, labour, etc.

Consider getting a professional appraisal or consult with reputable contractors or builders who may be able to assess the replacement cost of your home. 

Another factor is the cost of your personal belongings. Consider taking inventory of all your possessions, including furniture, electronics, clothing, and other valuable items. Estimate their total value and choose coverage limits that best protect your belongings. 

Finally, liability coverage is another vital aspect to consider. Liability risks may vary depending on where you live and your circumstances. Features, like having a high-risk dog or a pool, may increase your risk and therefore may require you to purchase higher liability limits to adequately shield you from devastating lawsuits.

Can you claim a new TV on your home insurance?

It depends on the circumstances surrounding the loss of your TV or the specific coverage that is provided by your policy. Most home insurance policies will cover electronics, like TVs.

So long as your TV is damaged or stolen due to a covered event, you will be eligible to file a claim with your home insurance provider. However, the reimbursement amount you receive may be subject to the coverage limits and deductibles as specified in your policy. Review your policy with a broker to understand any specific conditions or limitations that apply.

Making a claim on a new TV may mean your insurer will factor in whatever depreciation has occurred. In addition, deductibles will apply and impact the amount of reimbursement you receive. There are different loss settlement options for every policy, so be aware of what your loss settlement options are for your personal belongings so there aren’t any surprises when it is time to receive your settlement.

Final thoughts

Every home insurance policy is different. What one policy covers another may not. Bevan Insurance is highly dedicated to the best products available in the insurance marketplace and wants to make insurance “pure and simple” for its consumers.While this blog covered what home insurance may include, your policy may be different. Give us a call to discuss your personal policy documents today.

Written by Nathan Stansfield

With a career spanning over 5 years in the dynamic realm of digital marketing, I am dedicated to crafting compelling narratives and working with licensed experts in the insurance field, to ensure we deliver for you.

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