Homeowners insurance is the most effective way to protect your home and belongings from fire, theft and some natural disasters. Damage and theft happen to everyone and there’s no way to plan for it. Even with the most advanced safety and security systems, your home is still vulnerable to threats beyond your control. The only thing you can control is whether you have insurance coverage or not.

Having to fork over yet more cash after purchasing your new home can be painful but the last thing you want is to be left with no alternative if and when the unthinkable happens. Investopedia defines homeowners insurance as property coverage that protects your home and property from damages and defends you from liability if someone is injured on your property. Additionally, most mortgage lenders will require you to have a homeowner’s insurance policy before they will give you a loan.

There are many forms of homeowners insurance covering different types of damages. But most basic policies have the following:

HO1 – Dwelling Coverage

Basic homeowner’s insurance policies cover everything that can happen to your home resulting from typical severe weather. This includes damage from hail and the wind. If you live in a cold weather climate, it’s likely you’re covered for snow, ice and freezing temperature damage as well.

Other worst-case scenarios which are covered include:

  • Water and steam from burst pipes and overflowing tubs
  • Lightning strikes
  • Explosions
  • Riots and civil disorder
  • Aircraft crashes
  • Vandalism and theft
  • Power surges

This is the most basic form of homeowners insurance and will only pay for the repair or replacement of your home and any structures attached to it. That may or may not equate to true market value.

HO2 – Other Structure Coverage

Typically included in basic homeowner’s insurance policies, this type of coverage extends to any other structures on your property that stand separate from your home. This includes detached garages, sheds, swimming pools and fences.

HO3 – Personal Property Protection

This is the most common form of homeowners insurance, covering your home and structures as well as everything inside. This coverage reimburses you for the value of your possessions lost or damaged due to events and situations. Because of this, it’s a good idea to know the value of everything you own, just in case. You will be asked to list anything of value in your home for the policy.

HO4 – Loss of Use Coverage

If your home is damaged to the point to where it becomes uninhabitable, this type of coverage pays for any additional living expenses resulting from being temporarily displaced. This will cover the cost of your hotel stay while your home is being repaired.

HO5 – Personal Liability

In the instance someone has an accident on your property, this insurance protects your assets and covers your defense costs if you are being sued.

HO6 – Medical Payment Liability

If a lawsuit finds you or someone in your family at fault for an accident or injury on your property, this form of insurance covers any medical payments for which you are responsible.

What’s Not Covered?

Earthquakes and floods are often specifically excluded from basic homeowner’s insurance policies. Additional coverage is required to protect your home from these natural disasters if you live in an area prone to these occurrences.

With homeowners insurance, you’ll be able to sleep easy at night knowing you’ll be covered when it counts.

If you need help with your homeowner’s insurance claim, contact our Orlando insurance law firm today. Contact the Law Offices of Michael B. Brehne, P.A. for a free consultation for all insurance cases.