Homeowners Insurance 101: The Basics


Adequately understanding the basics of homeowners insurance policies can be vital when rebuilding or replacing your home and personal belongings. The following information covers the basic essentials of homeowners insurance and everything you need to know when considering its benefits.

What is homeowners insurance?

Homeowners insurance is a package policy that covers both the damage of your personal property as well as your liability and legal responsibilities concerning any physical injuries or property damage caused to others.


What does homeowners insurance cover?

Though a home insurance policy includes damages to your house, the coverage doesn’t stop there. Homeowner’s insurance policies also cover the following:

  • Personal belongings
  • Outside structures like garages, fences and more.
  • Loss of use (i.e. damages prevent you from living at home.)
  • Liability in case you are sued for damaged done to others or their property.
  • Medical bills for personal injuries
  • Downed trees
  • Lawn, tree and shrub replacement
  • Debris removal
  • Power outages
  • Grave markers

Additional coverage is needed for valuables like jewelry, electronics, antiques and other valuable possessions.


What does homeowners insurance NOT cover?

Though policy coverage includes an array of different circumstances, a few major perils are not included in average homeowners insurance.

  • Earthquake
  • Flood
  • Mold
  • Sewage backup
  • Sinkholes
  • Termite infestation
  • Nuclear plant accidents
  • Acts of terrorism


How do I insure my home?

Insuring the structure of your home is one of two steps in homeowners insurance. The structure of your home can be insured in 3 ways:

  • Replacement costs: repayment for replacing damaged property without depreciation deduction.
  • Extended replacement cost: coverage up to 20% over the original limit.
  • Actual cash value: coverage on the cost of your home without depreciation deduction.


If you have a home and are not satisfied with your current homeowners insurance, or if you are planning to purchase a home and are interested in homeowners insurance options, contact Heuer Insurance Agency to inquire about great rates, phenomenal coverage and helpful agents.









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