In a standard homeowners insurance policy provided by a Denver Insurance Agent, there are four essential types of coverage. These types of coverage include:
1. Coverage for damage to the house
2. Personal property coverage
3. Liability Protection
4. Additional living expenses, in the event you are unable to live in your house temporarily
1. Damage of the House
This part of your private mortgage insurance policy covers the cost to rebuild or repair your home in the event of a fire, hurricane, hail, lightning or any other disaster that is included in your policy. This will not cover damage to your home caused by a flood, earthquake, acts of terrorism, and simple wear and tear. Remember that when purchasing this type of coverage, it is important to buy a large enough policy to cover the cost to rebuild your home. Wave Financial Partners can help set up the perfect policy for you.
2. Personal Property
This part of the policy covers furniture, computers, appliances, and other personal property in the event that they are stolen or damaged in a break in, destroyed by fire, hurricane or other insured disaster. Most policies cover 50% to 70% of the insurance you have on the house. This means that if your insurance policy on your house is $200,000, you will typically be covered for $100,000 to $140,000 for your personal property.
3. Liability Protection
Liability coverage protects you against any lawsuits for property damage or bodily injury caused by you, your family members, or your pets. This means if your dog, son, daughter, or even husband ruins your neighbor’s new fence, you are covered. This type of coverage does not apply to your own personal property.
This type of policy will also provide what is known as no-fault medical coverage. This means that if a person is injured in your home, or on your property, they can submit a claim to your Denver insurance agency and it will be covered up to your limits. Your standard policy usually covers anywhere from $1000 to $5000 for this type of incident. It does not cover you, your family, or your pet for injuries.
The liability part of your coverage pays the cost of defending yourself in court, and any court awards up to the limit of your policy. The best part about this coverage is that it not only covers you at home, but anywhere you are in the world.
Most liability protection policies start around $100,000, however it is advisable to purchase at least $300,000 worth of liability protection. Some people prefer more, but it is completely up to the holder of the policy. Broader coverage is available if you purchase an umbrella policy, which has higher liability limits. Umbrella policies will typically cost $200 to $400 dollars for up to $1 million of liability protection.
4. Additional Living Expenses
This part of the policy pays any additional living costs you and your family will incur in the event your house is damaged or destroyed in an insured disaster, such as a fire, hurricane, or lightning. This means it will cover your hotel bills, restaurant bills, and any other ordinary living expenses incurred while your home is being repaired or rebuilt. Most policies provide coverage for about 20% of the insurance coverage on your house. If you desire, you can increase this coverage for an additional premium. If you are renting your house out, this coverage also reimburses you for any rent you would have received if your home is damaged.
