All About home insurance

All About Home Insurance


Home insurance is one of the most critical factors in homeownership. Home insurance does not only protect your house, but it is essential for more reasons than that.


Even Home Insurance is one of the most critical necessities new owners might not get the right insurance policy for their home.


It would help if you kept in mind that you don’t have to own a house for having Home Insurance; because various landlords also provide a renters insurance policy.


What Are Things Covered by Home Insurance Policy?


Insurance companies provide customization for insurance policies, making it easier for the insured to understand the coverage situations properly and understand what elements will be covered by the insurer.


1. Home insurance policies cover the damages that happened due to hurricanes, lightning, fire. In these situations, the insurance company will reimburse the damages so that you can repair your house. However, damages due to flood earthquakes and poor house maintenance are not covered by the insurer.


2. In case of theft, the insurance company will provide total compensation, and you can also file a reimbursement request for the jewelry you have lost.


In the situation of robbery, insurance companies set their limit on the reimbursement amount. For example, they state that they will only cover 50 to 70 percent of the amount.


3. The next element that comes under Home Insurance is liability coverage. Under liability coverage, you can protect yourself from the lawsuit filed against you. In most of the policies, pets are also included.


For example, if your dog bites somebody, in that case, you can ask your insurance company to compensate for the medical expenses of that person.


4. Next situation is additional living expenses. Suppose due to some reason such as if your home is being repaired or rebuilt. You will have to live in a rented place for a while or in a hotel.


The insurance company will provide you with the additional living expenses in which they will be compensating for the rent, the hotel room and much more.


Note: “Acts of God” such as natural disasters and “Acts of war” do not fall under the inclusive situations of Home Insurance.


Types of Home Insurance Coverages



Generally, there are three types of Home Insurance coverages, that are:


1. Actual Cash Value


In actual cash value coverage, your house’s compensation and other belongings are provided after deducting the depreciated amount of your items.

Depreciation is the current amount of items.


2. Replacement Cost


In the replacement cost, the coverage is provided to you without deducting the depreciated amount of your home and other items.


3. Extended Replacement Cost


In extended replacement costs, the insurance company gives whatever amount of money is required to repair your home. The insurance company can tell you that they can offer the extended replacement cost up to 25% higher than the limit. The limit varies in every insurance company.




Every homeowner should have home insurance for the house’s safety, precious belongings, and a secure future.