Home insurance policies are generally divided into several main types of coverage:
1. Dwelling Coverage:
- Covers damage to the physical structure of your home (walls, roof, floors).
- Helps pay for repairs or rebuilding if the home is damaged by a covered peril, like fire or hail.
2. Other Structures Coverage:
- Covers separate structures on your property, like garages, sheds, and fences.
- Often set at 10% of your dwelling coverage but can be adjusted.
3. Personal Property Coverage:
- Protects your belongings (furniture, electronics, clothing) if they’re stolen, damaged, or destroyed.
- Typically set at 50-70% of your dwelling coverage, but additional coverage for high-value items may be necessary.
4. Liability Coverage:
- Provides protection if someone is injured on your property and sues you.
- Covers medical bills and legal expenses up to your policy’s limit, usually starting at $100,000, but you can increase it.
5. Additional Living Expenses (ALE):
- Pays for extra costs if you must temporarily relocate due to home repairs after a covered peril.
- Covers expenses like hotel stays, meals, and other living costs beyond your usual expenses.
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