Types of Homeowners Insurance Policies: Which One’s Right for You?

structure of your house is the part of your policy that includes repairs or rebuilding if your home (dwelling) was damaged by fire, hurricane, hail, lightning or other disasters listed in your policy. Your “dwelling” typically includes your house, attached structures and fixtures in your house such as built-in appliances, plumbing, wiring, heating systems, and permanently installed air-conditioning systems. This coverage does not include damage caused by floods, earthquakes or routine wear and tear. When you buy your homeowners insurance, it is very important that you purchase enough to rebuild your home.

2. Coverage for Other Structures

Most standard policies also cover detached structures such as garages, storage sheds, and fixtures attached to the land such as fences, driveways, sidewalks, and retaining walls. These kinds of structures are usually covered for about 10% of the amount of coverage you have on your home. If you believe you need more coverage on these structures, make sure you talk to your insurance agent. If a detached structure is used for a business purpose, it is not covered under a homeowners insurance policy.

3. Your Personal Belongings

Items such as furniture, clothing, and sports equipment are covered if they are stolen or destroyed by insured disasters. Some policies may have limited coverage for small boats but not motorized vehicles unless they are unlicensed and only