If you have tangible assets, you need the protection of a homeowners insurance policy. These policies cover you in a home or an apartment, whether you are an owner or a renter. A well-written homeowners policy will pay to replace any of your personal property that is destroyed in a fire or other disaster. The policy will also be your first line of defense against a lawsuit from someone injured at your home.
The cost of this coverage is determined by many rating factors. The quality of the coverage, however, is determined by the quality of the insurer and whether the policy is written on a named perils or all-risk basis. A named-perils policy covers only those losses specifically cited in the contract. The all-risk policy works the opposite way - unless a peril is specifically excluded, coverage is provided. The all-risk policy is broader and the burden of proof is on the carrier, not you, in the event of a loss.
There are generally four distinct areas of coverage that you need to consider when looking for homeowners insurance: Liability Coverage, Property Damage Coverage, Medical Payments Coverage and Additional Living Expenses coverage.
Liability Coverage for homeowners includes coverage for if you or a member of your family is found legally responsible for injury of another person or property damage. In some policies, this coverage even extends beyond the borders of your property. Your insurance company will cover the damages up to the policy limit and support you in the event of a lawsuit. Certain limitations may apply depending on what type of dwelling you reside in, and whether or not you hold any other insurance plans, including auto or personal liability.
Property Damage coverage is fairly self-explanatory, but there are a surprising number of plans for such a straightforward area of coverage. That’s because there is a big, scary list full of things that can happen to your home, ranging from fire and flooding to hail damage or vandalism. There are two different options for property damage coverage: Named Peril Policies and Open Peril Policies.
Named Peril Policies only protect homeowners against specific risks. If a flood occurs, but your policy has no specific language covering flood damage, you won’t be covered.
Open Peril Policies, also known as all-risk policies, provide coverage for every type of risk, except ones that are specifically rejected by the policy. Open Peril Policies are the safer pick, but they often come with a higher price tag.
Medical Payments Policies do not protect you or your family members. They cover visitors who happen to sustain injuries on your property. This helps protect you from becoming personally liable for the medical expenses of your visitors. Regardless of fault, your insurance company will assist in paying medical bills up to the limit of the policy.
Additional Living Expenses Insurance covers a portion of your family’s living expenses if you are forced to relocate to a temporary dwelling after damage to your home. Any expenses above and beyond your normal expenses will be covered under this portion of your plan.
Call Campion Insurance today and find out how we can help you get the best coverage at a price you can afford.
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