Property Insurance Coverage: Which Assets Are Protected

The investment in home insurance is an important, and big decision. Many people believe this is the type of policy that protects only their home’s structure. While it does offer protection for the structure’s walls, most policies go further, providing ample protection to the homeowner for his or her belongings. Fires, theft, vandalism, and even storm damage can cause a significant amount of financial loss without the right home insurance plan. What types of coverage should your policy provide to you?

Protecting the Structure

Protecting the four walls of the home is the heart of any home insurance plan. This means the insurance policy will protect the actual structure in the event of an accidental and unavoidable loss. For example, if lightning strikes and causes a fire, this could damage the structure’s stability and overall integrity. The policy is likely to help cover the repairs and replacement of that structure depending on the amount of damage done. This may include making repairs to the walls, roof, flooring, and other structural components of the property.

Protecting What’s in the Home

Most home insurance policies also provide financial protection from losses of the homeowner’s belongings if and when the loss is a covered event. For example, that fire could damage your home furnishings, your electronics, your collection of valuable art and many other items within the home. The home insurance steps in to help pay for the repair or replacement of these items, in most cases. The policy will pay a value, generally about 10% of the value of the structural coverage to replace the contents of the home.

What About Outside?

Home insurance may provide even more help to the homeowner. That same fire can cause significant damage to the home’s landscaping, burning trees or damaging exterior lighting. It can cause damage to the existing structures on the property as well including outbuildings such as work-spaces, tool shops, and sheds. When this happens, the policy will cover the repair or replacement of those spaces or items up to the limits of the policy.

It is important for property owners to take a closer look at their existing home insurance plans to be sure they represent the home’s structure, value and contents accurately. Be sure it offers enough financial coverage (without a too-low limit) to ensure all of your assets are protected from all risks.

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