Wondering what exactly homeowners insurance covers? A homeowners policy contains two main sections, along with a variety of coverage limits, options and endorsements (also known as riders). Though every policy is different depending on your coverage choices and your insurance provider, each one will have the following:
- Property coverage: This covers the structure of your home, any additional structures such as a shed or fence, personal property (some policies even cover property if you travel internationally with it) and reimbursement for living expenses if a covered incident results in your home becoming uninhabitable.
- Liability coverage: This covers legal expenses and medical bills associated with the bodily injury and/or property damage suffered by a third party on your property or as a direct result of your actions.
The details and coverage limits of these two sections can vary widely, so it’s best to talk to your agent about what your unique policy will cover. Covered incidents will be listed, but will often exclude floods and earthquakes.
When buying home insurance, you must decide whether you want your policy to cover replacement value or actual cash value. Both options will pay out benefits following a covered incident so you can repair, replace or rebuild your property. However, replacement value is a good choice for newer homes that were built within the last 40 years because purchasing materials for repairs will cost more. Actual cash value is a better choice for older homes that have depreciated in value because the replacement value won’t be as high.
And don’t worry about high costs. Many insurers offer a variety of discounts from multi-policy discounts (bundling home, auto and life is the most popular), to senior discounts and even safety discounts if you’ve installed features such as dead bolts, smoke detectors, security alarms and more. Ask your agent if you qualify for savings today!
We’ll help you find affordable, yet effective coverage. Call Starr Insurance Agency at (512) 451-2244 for more information on Austin home insurance.