Whether you’re buying your first homeowners insurance policy or wanting to update your current policy, knowing the basics of home insurance coverage is key. Before you can make an informed decision, you should be familiar with the different types of home insurance available to you.
A standard homeowners insurance policy includes the following coverages:
- Dwelling coverage is the basis for all homeowners insurance policies. It provides protection for the structure of your home including the floors, walls, built-in appliances and ceilings, as well as any attached structures. It also covers a variety of perils including fire, hail, theft and vandalism – and can help you rebuild your home in the event of a total loss (up to your policy limit).
- Contents coverage protects items including furniture and clothing in your home. If a covered incident were to occur, you would receive funds for the value of these items, as defined by your policy. Personal liability pays for damages that occur from certain accidents.
- Personal liability consists of bodily injury damage coverage, which covers costs if a guest sustains an injury in your home or elsewhere, and property damage coverage, which kicks in if your property is damaged as a result of a covered accident.
However, dwelling coverage does not cover everything, no matter what your policy limits are. For this reason, it’s a good idea to customize your policy by having additional coverages to suit your specific situation. We’ve outlined our optional, add-on coverages below to help you understand what each one covers.
Optional home insurance coverages:
Flood insurance protects your house and belongings from flood-related damages. It is a separate policy with its own deductible. If you live in a state or area that is prone to flooding, this coverage is a good idea and may even be required depending on your location.
Earthquake insurance covers your home in the event of damages caused by an earthquake. This policy also has its own deductible.
Replacement cost plus is an extra level of protection that can provide additional coverage to rebuild your home after a total loss. If you have owned your property for an extended period of time and are concerned about depreciation, taking out additional replacement cost coverage may be a good idea.
Water backup of sewer protects your home in the event of sewer or drain backup, which is an unfortunate but common issue faced by homeowners.
Other structures insurance covers property that is unattached to your home, such as a gazebo, shed or unattached garage. If you have any of these structures on your property, it’s a good idea to insure them to avoid the risk of paying out of pocket if an accident occurs.
Personal umbrella liability insurance provides additional coverage for bodily injury, property damage and personal injury to others – beyond the policy limits outlined in your main homeowners policy.
Medical payments coverage may provide payment for a medical expense resulting from an accident on the customer’s property. This coverage is intended for the immediate medical treatment of guests on the customers’ premises, without determining fault.
Ordinance or law insurance kicks in if you need to rebuild your house to fit current building codes after a covered loss. It can be a smart choice if you have an older home.
Valuables Plus® is a unique Nationwide coverage that provides an extra level of protection for your high-value items such as jewelry, antiques and fine art in the event of a covered incident.
Brand New Belongings® is an optional, add-on endorsement that can provide funds to repair or replace certain belongings in the aftermath of a covered loss, without a deduction for deterioration and depreciation.
Better Roof Replacement® is an optional coverage that can help you rebuild your roof to be stronger and safer after a covered loss.
Your homeowners insurance should be unique to your home and your needs. To learn more about what home insurance policies cover, call a Nationwide professional today at 1-877-On Your Side (1-877-669-6877) or start a home insurance quote online today.