One thing a homeowner shouldn’t underestimate is the importance of good coverage, or rather, the right coverage when you need it most. It’s important to protect what you have with the right insurance plan. Protecting the physical structure of your home is not the same as guarding the valuables inside of it. That’s why home insurance is split into three pieces of coverage: Dwelling Coverage, Personal Property Coverage, and Personal Liability. The two most important are Dwelling Coverage and Personal Property Coverage.
Don’t Dwell on Being Unprotected:
Dwelling Coverage covers the physical parts of your home. It covers items like walls, floors, built-in appliances, ceilings, and structures attached to your home. Basic hazards like fire, hail, smoke, vandalism, and theft are also covered under dwelling insurance.
But as with any policy, it’s important to know what Dwelling Coverage does NOT cover. If you have structures on your property that are not attached to your home, such as a shed, Dwelling Coverage will not insure it.
Dwelling Coverage can help you rebuild your home in case of a total loss, depending on the limit of your policy. Be it damage due to adverse weather or otherwise, Dwelling Coverage makes sure the physical parts of your home that can be replaced, repaired, or rebuilt are covered.
Take Your Protection Personally:
Personal Property Coverage is the part of home insurance policies that cover your actual personal belongings. Such items include clothing, furniture, and electronics that could be lost in a worst-case scenario. It’s important to be prepared for tragic and unexpected events, where valuable, material assets can be lost or damaged.
Most typical types of home insurance include Personal Property Coverage. There are also two types of Personal Property Coverage: replacement cost and actual cash value for homeowner compensation.
In the case something valuable is lost, the replacement cost policy typically pays the dollar amount of what it would take to replace an item. Cash value policies determine value by taking the actual cost of your belongings and automatically factor in depreciation over time. Even Personal Property Coverage has limits however and may not always replace the full value of an item. Jewelry for example, while technically considered personal property, requires a separate policy of protection.
You may have invested a lot in your belongings. It’s important to protect these items so that they can be replaced if they are ever lost in a tragic event or accident.
The Bottom Line:
It’s important to have clear communications with a credible agency that can provide you with the right coverage for your situation. Dwelling Coverage and Personal Property Coverage are two important halves of a whole, and your home isn’t truly protected without either. With all the moving parts in the real estate and insurance industry, it helps to have experts there to cut through the excess and tell you exactly what you need to know. The Huneycutt Group has the experience to protect your assets and give you the peace of mind you deserve. For more information regarding your home insurance, contact us today.