Homeowner Policy Coverages
– Part 2
Homeowner Policy Coverages - Part 1 covered Dwelling, Other Structure and Personal Property coverages. The following are additional coverages that may be included in your policy:
Coverage for Loss of Use or Additional Living Expenses
This coverage pays for your living expenses if your house is deemed unlivable. For example, if you can’t stay in your home due to a broken pipe that floods your home or a fire burns down your house. However, your normal cost-of-living expenses, such as your house payment or utility bills, are not covered. Your policy usually will include the loss of use or additional living expense coverage at 20 percent of your dwelling coverage limit without additional premium. Your policy may include restrictions on this coverage, so check with your agent or insurance company.
Medical Payments Coverage
This coverage pays the medical expenses of others when they are accidentally injured on your property. Most policies include at least $1,000 of coverage, but higher limits may be available. Generally, this coverage is limited to any non-resident on your property with your permission. The insurance company does not need to determine negligence to pay the injured person or their provider. This coverage also is called “good neighbor” coverage.
Personal Liability Coverage
This coverage pays expenses for bodily injury and property damage sustained by others when you are legally liable. For example, if you knew you had a loose deck railing and someone leaned on it, and fell off your deck and was hurt, you would be liable. Most policies include at least $100,000 of coverage, but higher limits may be available. When deciding how much coverage to buy, think about the value of your total assets, and how much you might lose if someone successfully sued you for damages.
Personal liability coverage extends beyond your property limits. If an incident occurs involving family members who live with you (as defined in your policy) at other locations, it will cover the liability of your family members. For example, it may provide coverage if your minor child damages a neighbor’s property.
This type of coverage generally provides for debris removal, damage to trees, plants and shrubs. Additional coverages also may include credit card coverage. This protects you if someone steals your credit card and makes unauthorized charges.
Your policy may cap the amount of coverage in this category, and it may limit the coverage to specific perils. Check with your agent or insurer to see what additional coverages are available.