Which Types of Events are Covered by Home Insurance?

With the exception of it being required by mortgage lenders, having homeowners insurance is a choice, but there is a reason why almost everyone chooses to get it. Even a basic homeowners insurance policy can substantially ease financial burdens resulting from a covered event that damages your home, property, or belongings. With home insurance coverage being so beneficial, you may be wondering what types of events a basic home insurance policy covers.

Events That a Basic Home Insurance Policy Covers

A basic homeowners insurance policy will protect against loss resulting from:

  • Hail and lightning
  • Fire, smoke, and explosions
  • Windstorms including tornadoes
  • Aircraft and vehicles
  • Vandalism and theft
  • Riots and civil unrest

If any of these events occur, you can be reimbursed for the actual cash value (ACV) of your lost or damaged property and possessions, taking into account depreciation. Alternatively, your possessions could be replaced with similar items at the current or replacement market value (RCV), although annual premiums for RCV policies are often higher.

But what if you need broader coverage?

Beyond Basic Home Insurance: Broader Coverage

Most standard homeowners insurance policies don’t cover power failure, earthquakes, flooding, or war without the addition of separate policies.

If you opt for broader coverage, you can be covered for additional perils such as:

  • Accidental water or steam damage
  • Accidental damage caused by household appliances, electrical current, eating and A/C units or plumbing
  • Damage from falling objects
  • Damage from the weight of ice, sleet or snow

Carefully consider which perils you’re at risk of experiencing in your area, the value of your home and all that’s in it, and your financial situation when deciding on home the best home insurance policy for you.

Selecting the Right Home Insurance Policy

It would be a shame to learn that your home insurance policy isn’t a fit for your needs after being affected by any of the unpleasant events mentioned above. Therefore, it’s important to understand all of your options when you select your policy.

That way, you can make an informed decision and spare yourself a lot of trouble if and when an unexpected event occurs. Contact our insurance professionals at GWK Insurance today to discuss your needs and find a home insurance policy would serve you best!