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Home Insurance Explained: A Guide to Homeowners Insurance

Home insurance is one of the most basic, yet important insurance policies available. Most homeowners in Texas have home insurance, and home insurance is usually required by lending institutions if there is a mortgage out on the home.

But did you know that home insurance isn’t just protection for your home’s structure? Home insurance varies from policy to policy, but coverage options can include everything from basic structural coverage, to liability, to living expenses coverage should your home become damaged and you need to relocate temporarily.

Here is a basic overview of what is generally included in a home insurance policy, as well as additional available coverage options.

What’s Included?

While all homeowners’ policies are different, some basics are generally found in every homeowner’s policy.

-Structural Damage – Structural damage, or dwelling coverage, is the coverage to repair or rebuild your house. Generally, it also includes electrical, plumbing, and heating.

-Other Structures – Additional structures that are generally covered under homeowners insurance include buildings such as detached garages, sheds, and fences.

-Personal Property – Personal property coverage is coverage for your personal belongings in the event of a loss to your house. There are usually limits on the amount of personal property that will be covered, so make sure you have enough coverage for your high value items.

-Loss of Use – In the event of damage to your home, you may need to temporarily relocate. If your policy has a loss of use clause, your living expenses, and temporary accommodation will be covered.

-Liability Insurance – Generally, there is some level of liability insurance on standard homeowners’ policies. Liability insurance protects you in case of a lawsuit due to a third party injury on your property.

Additional Coverage Options

Generally, perils such as floods and earthquakes are not included in homeowner’s insurance policies. But these can generally be purchased as additional coverage. For example, if you live in a high-risk area that is prone to flooding, you may want to consider flood insurance.

Additional coverage is also available for high value personal property. This is important coverage if you have items such as jewelry, fine art, furs, and belongings that may go beyond your standard homeowners policy limit.

Named Perils Vs. Open Perils

Perils refer to causes of loss, such as a fire or windstorm. You can purchase homeowners insurance on a “named perils” or an “open perils” basis. Named perils coverage will list the perils that are covered, while an open perils policy will list perils that are excluded. Open perils coverage is less restrictive, providing coverage that is more comprehensive.

Every home insurance policy is different, with different coverage options and varying levels of coverage. If you would like to purchase additional coverage, or compare rates, contact Katy Texas Insurance. We offer comprehensive coverage options at competitive rates. (877) 952-1010