Unveiling the Basics of Home Insurance Coverage

If you’re smart, you have home insurance coverage. If you don’t, you need to buy a policy as soon as possible. No one looks forward for anything bad to happen around. When a loss happens, you need coverage. You might also not know that more than just your home is covered, for example, you’ll also be covered against liability should someone become injured on your property. Simply put, you need to insure your home to cover you from significant financial losses you simply cannot afford.

Home insurance coverage basics

The following are some facts that you should know about:

Property Damage

As your largest and most important investment, should you have a fire or some other kind of property damage; you’ll at least need monetary compensation to help you get back on your feet, even if you can’t replace every single piece of property lost by your misfortune. Losing your home is bad enough; it’s worse, though, if you don’t have the monetary resources to help you recover from this loss.


If you already have a mortgage, then it’s likely that your lender has already required you to have an insurance policy in place. Standard homeowner insurance coverage can differ, but most have different types of coverage contained within a single policy so that it’s most cost-efficient for you to buy. Usually, you will have five different types of coverage in your homeowner’s policy. If anything wrong happens to your property and it gets damaged somehow, these coverage will help you for protecting your home and your property.

Liability Coverage

Liability coverage protects you if someone should file a claim against you because they’ve been injured or have had property damage caused by your negligence. It should be noted that this type of liability coverage is for negligence not caused by your automobile.

Coverage for medical payments in your insurance policy will pay for medical treatment if someone has been accidentally injured on your property. It also applies to certain situations that occur when you’re not at home, whether or not you are actually at fault. This actually applies to when there are some mishaps at your home that occurs without your presence. If you are unable to live in your home due to the damages incurred, then this insurance will cover up the damages and help you move into an apartment or motel.

Property rental insurance

The other structures in your property that includes the shrubbery and trees are the other types of the home insurance coverage.You should be noted that standard homeowners’ insurance coverage does not cover flood damage; this is a type of insurance policy that you need to purchase separately from your standard policy.

How much insurance should you buy? You need to buy enough homeowners insurance so that you can protect both the structure (your home itself) and the contents within if you should have a loss. Your task here is to figure out how much it would cost you to replace your possessions and rebuild your home today, using today’s prices.

Your homeowner’s policy will insure your personal property on an actual cash value basis. You are normally going to encounter limits that are 50% of the policy limit, of the structure value. Replacement cost can be considerably higher than the price you originally paid for your home.


Given this information, you can see that your home insurance policy needs to offer you adequate protection. Therefore, be wise in your purchase. After the purchase of your home itself, this will be one of the best investments you’ll ever make. Hopefully, that day doesn’t come, but you’ll breathe a sigh of relief that you have home insurance coverage in the event you experience damage or loss.

About the author: Tejas Maheta is the Founder of techiegenie.com and a tech geek. Besides blogging he love reading books, Learning new things, and Hanging out with friends.