Homeowners insurance, of course, provides protection for your house. This is far from all that the insurance protects, though. Here are some of the other things that homeowners insurance typically covers.
Other Structures on Your Property
First, many homeowners policies also cover other structures that are on your property.
Some homeowners assume that their fence, detached garage, gazebo, and backyard ice rink are covered just as their house is, but these other structures are usually treated differently by insurers because they don't have the same systems, cost the same amount to build, or are used in the same way as a primary house.
Nonetheless, your home insurance likely includes secondary structures coverage that provides protection for all of these items and any other similar structures that are on your property. To find out exactly how these structures are covered, review this part of your homeowners insurance policy with your insurance agent.
Belongings Kept on Your Property
Second, homeowners insurance commonly covers personal belongings that are kept in or near a home. Your belongings usually don't have to be in a home itself to be insured, but they may need to be on the same property as the house.
Coverage for personal belongings that are on your house's property typically extends to almost anything you have, although there can be somewhat low limits for certain items that you may have. For example, insurers might limit how much coverage a policy provides for collectibles, jewelry, silverware, guns, and art.
How your personal belongings are protected depends on the type of personal property coverage that your homeowners policy affords. Belongings might be insured for their fair-market value or for how much they would cost to replace (which is often more than their fair-market value). Your insurance agent can help you determine what kind of personal property coverage you have.
Liability Lawsuits People Could File Against You
Third, personal liability coverage comes with most homeowners insurance policies. Should you be personally named in a liability lawsuit, your homeowners insurance policy can help cover both legal costs and any settlement that arises from the lawsuit.
Importantly, liability coverage from a homeowners insurance policy helps pay covered legal expenses regardless of the outcome of a lawsuit and before the final outcome is known. As soon as you're named in a covered suit, the protection will begin to help pay for your legal defense so that you don't have to worry about attorney fees.
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