June is National Homeownership Month, in celebration of owning a home. Home ownership can be both rewarding and challenging. Understanding homeowners insurance can provide relief in stressful situations.
Types Of Policies
There are different types of coverage under each kind of policy. The two most common types of homeowner policies are HO-2 and HO-3. A HO-2 policy is a named-peril policy meaning the insurance covers specific events as defined in the policy. A HO-3 policy is an open-peril policy meaning the policy covers most events except exclusions the policy states.
A HO-5 policy is the broadest of types, covering both dwelling and personal property events, except the listed exclusions. The HO-5 policy is not as common as a HO-2 or HO-3 policy.
In addition to types of insurance, there are basic standards homeowner policies cover in many cases.
Standard Coverage
Reconstruction or repair of the home is standard for homeowner policies. Policies normally include the yard and attached structures, like a garage. Some instances are not included, for example floods are generally a separate policy for specific properties. In many cases, coverage includes unattached structures. If you have an unattached garage, shed or barn check your policy for coverage.
Personal belongings coverage is separate for most homeowner policies. Personal belongings, like furniture or clothing, falls under this type of coverage. Replacing personal items falls under this kind of coverage for events like fire or theft.
Liability coverage protects people visiting your home and may apply if you accidentally hurt someone while away from your home. This coverage may apply in instances like a dog bite or someone falling while at your house.
Medical Payments coverage pays medical bills for people with injuries from an event. This coverage is in addition to liability coverage. Medical Payments coverage covers an injured person regardless of who is at fault.
If you are a homeowner, read your policy and ask questions to understand it. If someone is injured on or off your property, provide a copy of your homeowner policy to your attorney. An experienced attorney can help you research your homeowners policy for coverage.
To schedule a free consultation contact Merdes Law Office, P.C. toll free at 866.452.3741 or for further information please visit www.merdes.com. And while we hope you never need us… We’re here if you do.
Source: Nerd Wallet, “Understanding Homeowners Insurance” by Alex Glenn
