The basics of homeowners insurance coverage

Purchasing a home is a big deal. And to you, we say congratulations!

What might not be nearly as exciting is finding an insurance plan that covers your needs at your new home. Yet, no matter how exhilarating the process of searching for insurance is—or is not—it’s essential.

Before you start down the path of a new policy, here are a few basics on homeowners insurance coverage.

Homeowners insurance 

Dwelling coverage
Dwelling protection is the most basic coverage of a homeowners insurance policy. It can help cover the structure of the home including the foundation, roof, walls and more. Dwelling coverage may also cover a garage, deck and other structures attached to the home. 

Personal property coverage
Personal property protection may help cover the coveted belongings you keep within your home, such as electronics, furniture and clothing. This type of coverage may help repair or replace items that become damaged or destroyed by a covered risk. Independent insurance agents can also recommend greater protection for your most valuable articles, such as jewelry, watches and furs, often referred to as extended coverage. 

Personal property is typically a standard coverage, but it’s always important to double-check your policy to make sure. 

Liability insurance coverage
Liability is another basic homeowners and renters insurance coverage. It can help protect you when someone not living with you is injured on your property, similar to how auto liability coverage can protect against other drivers. For example, if a visitor injures themselves in your backyard, bodily injury liability coverage may help pay for resulting legal expenses or the visitor’s medical bills if you are found to be at fault. Your independent agent can also add a personal umbrella policy if you’d like to increase your liability coverage limits. 

Possible discounts
If you skipped directly to this section, we understand why. Discounts are great! Who doesn’t want a discount?

When it comes to insurance, most independent agents are able to give policyholders discounts for bundling coverage like home and auto and for setting up automatic payments. You may also be eligible for a discount if you pay for coverage in six-month increments or annually.

Whatever coverage you have, it’s always worth a quick call or email to your agent to double-check and make sure you’re getting all discounts available to you. You never know!

What doesn't it cover?
Please refer to your agent for more information on what’s not covered under your policy. 

In most cases, homeowners insurance doesn’t cover certain natural disasters such as flooding and earthquakes. There was also a recent story about a tiny rodent causing a ruckus in a home while the homeowners were away on vacation. In that instance, the damage to the home was not covered because animals, such as rodents, are not covered under this specific policy. The moral of the story is that it pays to ask your agent. 

Hopefully this overview provides a better understanding of what you want to make sure your homeowners insurance coverage encompasses when looking for policies. 

If you’re interested in talking to an agent, click here to locate one in your area today.

Disclaimer: Subject to applicable legal requirements, United Fire & Casualty Company and its subsidiaries and affiliates (UFG Insurance) are no longer renewing or writing new personal lines coverage for current or potential policyholders in most states. To accommodate obtaining replacement coverage, we have entered into a renewal rights agreement for most of our personal lines business. Read more here.