Understanding Your Homeowners Insurance
Homeowners insurance protects the investment you have made in owning your home. But, insurance is complex, and understanding the coverage included in your homeowner's policy can be difficult. To help you better understand your policy, here is a breakdown of the coverage included in a typical homeowner's insurance policy and some things you may want to consider for extra protection and peace of mind.

Homeowners Insurance Provides Coverage for:

Structure Coverage Against Named Perils (such as fire, hurricanes, lightning, ...)

Most homeowners policies provide coverage for the structure of your home against certain catastrophes, such as fire, hurricanes, lightning, and other disasters specifically noted in your policy.

​Consider: Additional Coverage for Flood and Earthquake

Typically, homeowners policies do not provide coverage for the structure of your home should it be damaged in a flood or earthquake. If these natural disasters are common in your area, you should ask your independent agent about adding extra coverage to your policy to protect your home.

​Coverage for Your Personal Belongings

Your homeowner's policy will provide basic coverage to protect the contents of your home. According to the Insurance Information Institute, “most companies provide coverage for 50% to 70% of the amount of insurance you have on the structure of your home.”

Consider: Valuable Possessions Endorsement

For those items of higher value, such as jewelry, furs, coins, collectibles, etc., the coverage provided in your homeowner's policy might not be enough to replace or repair those items if they are stolen or destroyed. Create a household inventory checklist, discuss its contents with your independent agent, and determine if you need a valuable possessions endorsement to protect your valuables.

Liability Coverage

Typically, your homeowner's policy will include coverage that protects you and your family against liability risks, such as a visitor falling and getting injured on your premises.

Consider: Umbrella Insurance Coverage

With the increase of frivolous lawsuits and the seemingly limitless settlements, having extra liability protection is always a good idea. An umbrella policy provides extra coverage beyond what is normally included in a typical homeowners policy, and can ensure that you are not at risk of losing your home or your financial footing due to one friendly visit gone awry.

Owning a home is both exciting and overwhelming. Understanding your coverage will help ease your concerns and provide you with confidence to live assured. For more help with the specifics of your homeowners insurance policy, contact your local independent agent, or browse Preferred Mutual's online library for more tips and information. 

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