If you have homeowners insurance, you may be familiar with some of the more important benefits it offers, such as covering the cost of damage to your home and personal property, paying costs related to rebuilding after a fire or other disaster, and providing liability coverage in case you injure someone on your property. However, there are a few other benefits that people often overlook, or don’t realize their policy includes, that can really come in handy when you need them most. Here are 10 important benefits of homeowners insurance that are frequently overlooked by policyholders but can make all the difference if the unexpected happens.
Liability protection
Your homeowners insurance policy includes liability protection, which can help cover the costs of medical bills or property damage if someone is injured on your property. This type of coverage is important because it can help protect you from being sued or having to pay out-of-pocket for damages.
Personal property coverage
One of the main benefits of homeowners insurance is personal property coverage. This can help protect your belongings in the event that they are damaged or stolen. Most policies will cover the replacement cost of your belongings, up to a certain limit. This means that you will not have to pay out-of-pocket to replace your belongings.
Medical payments coverage
Homeowners insurance typically includes medical payments coverage, which can help pay for minor injuries that occur on your property, regardless of who is at fault. This type of coverage can be especially helpful if you have a lot of visitors to your home or if you live in a high-crime area.
Living expenses
Homeowners insurance policies typically cover additional living expenses if your home is uninhabitable due to a covered event. This can include hotel stays, restaurant meals, and other necessary costs incurred while your home is being repaired. This coverage can be a lifesaver if you’re unexpectedly displaced from your home.
Replacement cost coverage
Your homeowners insurance policy will typically cover the cost to repair or rebuild your home if it’s damaged by a covered event, like a fire. This is called replacement cost coverage.
Most policies will reimburse you for the actual cash value of your home and belongings at the time of the loss, which could be less than what it would cost to replace them today.
Homeowners insurance may also cover the cost of temporary living expenses if your home is uninhabitable after a covered loss.
Loss of use coverage
Most homeowners insurance policies include loss of use coverage, which can help you with additional living expenses if your home is uninhabitable due to a covered event. This coverage can help pay for things like a hotel stay, restaurant meals, and other necessary costs while your home is being repaired.
Legal protection
Did you know that your homeowners insurance policy provides you with legal protection? If someone is injured on your property, or if you’re sued for damages, your insurance company will help pay for your legal fees. This protection is especially important if you have a lot of assets to protect.
Emergency assistance
Your homeowners insurance policy may offer protection in the event of an emergency. For example, if your home is damaged by a fire, you may be able to get help with temporary living expenses. If you have to evacuate your home due to a natural disaster, your policy may cover the cost of transportation and lodging. You should check with your insurer to see what type of assistance is available under your policy.
Other insurance covers
Your homeowners insurance policy covers more than just your home. It also protects your personal belongings, provides liability coverage, and can even help pay for temporary living expenses if your home is damaged or destroyed. You may be able to increase the amount of insurance you have on some items such as jewelry, collectibles, and art so that you’re not stuck with a big bill in the event of a fire or burglary. If your deductible is too high (generally $1,000), there are ways to decrease it including through something called an umbrella policy which will cost you about $1-2 per day depending on how much coverage you want.
Discounts on your auto insurance policy
Most people are aware that you can get a discount on your auto insurance policy if you have a homeowners policy with the same company. But did you know that there are other discounts and benefits that come with being a homeowner? For example, some companies offer discounts for security systems, smoke detectors, and safety items like fire extinguishers. Some also offer credits for attending home maintenance classes or energy efficiency programs like HVAC tune-ups or insulation installations.