A standard homeowners policy typically covers perils such as fire, theft, and weather-related damage, but there are many other perils that homeowners should be aware of.
Fire damage is one of the most common perils a homeowners policy covers. This includes damage caused by wildfires, lightning strikes, and electrical fires.
Fire damage can devastate a home, causing significant structural damage and destroying personal belongings. A homeowners policy typically covers the cost of repairing or replacing damaged property and temporary housing for the homeowner while repairs are being made.
Another peril covered by homeowners insurance is theft. This includes theft of personal property such as electronics, jewelry, and other valuable items.
If a thief breaks into a home and steals things, the homeowner can file a claim with their insurance company to receive compensation for the stolen items.
Weather Related Damages
Weather-related damage is another peril that is typically covered by a homeowners policy. This can include damage caused by wind, hail, tornadoes, and hurricanes.
Such damage can be extensive, causing structural damage to a home and destroying personal property. A homeowners policy typically covers the cost of repairs or replacement of damaged property, as well as temporary housing for the homeowner while repairs are being made.
Water damage is another peril that a homeowners policy can cover. This can include damage caused by burst pipes, flooding, and other water-related incidents.
Water damage can be costly to repair and can cause significant damage to a home’s structure and personal belongings.
A homeowners policy can help cover the cost of repairs and replacement of damaged property.
It is worth noting when talking about water damage and flooding, you need to talk with your insurance agent about the need for a separate Flood Insurance policy. While a broken pipe that causes water damage inside your home may be a covered loss, outside water from a flood likely will not be covered, unless you have a Flood Insurance policy in place.
Liability coverage is another important part of a homeowners policy. This covers the homeowner if someone is injured on their property and sues for damages.
One of the most common Homeowners Liability claims that get filed are ones that are the result if a dog biting another person. According to the Insurance Information Institute, dog related injury claim payouts exceeded $1 Billion in 2022, with the average claim totalling $64,555.
Liability coverage can also cover the injured party’s legal fees and medical expenses. Homeowners must have adequate liability coverage to protect themselves from financial loss in case of an accident on their property.
Other Types of Coverage
Other perils that a homeowners policy may cover include damage caused by falling objects, vandalism, and damage caused by vehicles.
Reviewing the specific details of a homeowner’s policy to understand what perils are covered and excluded is essential. Some policies may have exclusions or limitations on coverage for specific risks, so it is crucial to understand the policy terms.
In addition to understanding what perils are covered by a homeowners policy, it is also essential for homeowners to take steps to prevent damage to their property.
This can include regular maintenance of the home’s structure, such as cleaning gutters and inspecting the roof for damage. Homeowners should also take steps to prevent theft, such as installing security systems and locking doors and windows.
In conclusion, a homeowners policy is designed to protect homeowners from financial loss due to damage to their property or any legal liability that may arise from accidents on their property.
A homeowners policy may cover fire damage, theft, weather-related damage, water damage, liability coverage, and other perils such as falling objects and vandalism.
Homeowners need to review the terms of their policy to understand what perils are covered and what perils are excluded. Homeowners should also take steps to prevent damage to their property and protect themselves from financial loss in case of an accident on their property.
Brian is the Director of Property & Casualty at Stonebridge Insurance.