FINANCE

Tuesday, October 26, 2010

What Does House Insurance Cover? - What You Should Know

What does your house insurance cover? The time to find out is not when a disaster has already occurred and you learn you're not covered!

What is Usually Covered

Typical homeowner's policies cover the following items:

* Your home itself, including attachments such as a garage or rental unit

* Your personal possessions (Subject to limits - for example, many policies only cover jewelry up to $1000. You need to purchase a rider for extra coverage.)

* The personal possessions of any guests staying at your home

* Items you were storing at your home for someone else

* Your lawn and landscaping

* Buildings and structures on your property that are not attached to your house, such as tool sheds and gazebos

* Vacant land (except for farmland) that you own or rent

* Living expenses if your home is damaged and you have to live somewhere else during repairs

* Rental payments if a part of your home that you rent becomes unlivable due to damage

What Your Insurance May Not Cover

Some coverages you may not have include:

* Replacement cost coverage, which pays what it would cost to replace your home and possessions rather than their Actual Cash Value

* Mold and water damage

* Natural disasters

* Dogs

* Intentional damage

* Home office equipment

* Luxury items and collectibles

You can often buy supplemental coverage for these items.

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