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Types of Home Insurance Coverage

Home insurance, also known as homeowners' or home indemnity insurance, is a type of property insurance that covers damages to the policyholder's home and its contents. It also extends to liability for accidents that occur on the property. The coverage provided by home insurance can be broadly categorized into several types, each serving specific purposes.

Essential Coverage Types​

  • Dwelling Coverage: This type of coverage pays for damages to the physical structure of your home, including walls, roof, windows, and other components.
  • Personal Property Coverage: This coverage protects against loss or damage to personal belongings such as furniture, appliances, clothing, and other household items.
  • Liability Coverage: This aspect of the policy offers financial protection in case you're held accountable for injuries to others on your property, or damages to their property.

Additional Types of Home Insurance Coverage​

  • Additional Living Expenses (ALE) Coverage: If your home becomes uninhabitable due to a covered event, this coverage helps cover the costs of temporary living arrangements.
  • Other Structures Coverage: This type of insurance protects detached structures such as garages, sheds, and fences.
  • Valuable Item or Personal Article Rider: For expensive items like jewelry, art, or collectibles, you might need to add a separate rider to your policy for adequate coverage.
  • Guaranteed Replacement Cost: This option ensures that if your home is damaged beyond repair, the insurance company will replace it with one of equal value.
  • Ordinance or Law Coverage: If a covered event renders part of your home unusable due to outdated building codes, this type of insurance covers costs associated with bringing those areas up to current code.