For many of us, our home is not only the place we live, but also our highest-value asset. Protecting your property with sufficient homeowners insurance can give you peace of mind that if your home or its contents are damaged, you will be able to repair or replace them, and if you are sued by someone injured on your property you will have coverage to pay for damages and legal assistance. It may even provide coverage for you when you’re not on your property.
In January we are answering the most common questions we hear about homeowners insurance. Be sure to check out part 2 later this month. Contact Aversa & Linn with questions about homeowners insurance or assistance in evaluating your claim.
What is homeowners insurance?
Homeowners insurance is a type of property insurance that pays out if your home or belongings are damaged or destroyed by events covered by the policy, like weather, fire, and vandalism. It may also provide liability coverage if someone is injured on the property.
The purpose of homeowners insurance is to:
- Pay to repair your house, landscaping and other structures;
- Pay to repair or replace your personal belongings;
- Pay for you to live elsewhere while your house is being repaired; and
- Cover personal liability if you’re held legally responsible for damage or injury to someone else.
Typical homeowners policies do not cover floods or earthquakes. Most policies have limits and exclusions, which should be read carefully. Certain characteristics of your home may need specific coverage to be purchased, for example a sump pump. Additionally, some policies may have riders that provide additional protection from specific perils. Talking with an experienced insurance broker can help ensure you are buying coverage to meet your needs.
Homeowners insurance is not required by law, however a mortgage lender is likely to require the homeowner to have an active policy in place.
Homeowners should periodically review their policy to make sure that the coverage continues to meet any increased replacement costs due to inflation or other factors. You may also want to review your coverage with your insurance broker.
What does homeowners insurance cover?
Homeowners insurance typically covers the structure of the dwelling and personal items. It also provides liability protection, meaning it will pay for legal costs that result from someone being injured on your property. It will even extend to incidents off of your property under certain circumstances. Policies often pay for medical treatments for anyone injured on the property, and may help to pay temporary living expenses while the damage to your home is repaired. Carefully reviewing your policy can help you understand what is and is not covered.
What does homeowners insurance not cover?
Homeowners insurance typically does not cover losses caused by floods, earthquakes, and wear and tear. Most policies also do not cover damage to expensive items like jewelry or art, if they exceed the policy’s coverage limits. Additionally, most policies will not cover any intentional acts of damage or negligence.
Is homeowners insurance required in Pennsylvania?
No, homeowners insurance is not required by law in Pennsylvania. However, your mortgage lender will require you to have a policy in place if you are financing a home. Additionally, if the home is located in an area prone to natural disasters such as floods or earthquakes, additional coverage may be required. Regardless of the requirement, considering the value of your home, it is important to make sure that you and your family are protected against unforeseen occurrences.
If you have questions about homeowners insurance, or an injury that occurred on your property, contact Aversa & Linn for a free consultation to discuss your options.
