What Coverages Do Home insurance Policies Offer?
As mentioned, home insurance policies normally offer multiple protections. They accomplish this by making several coverages available as either standard or optional protections. Some of the more widely available coverages are:
- Dwelling Coverage, which may cover a house itself
- Secondary Structures Coverage, which may cover other structures on a property
- Personal Property Coverage, which may cover personal belongings
- Vacant Property Coverage, which may cover a house when it’s unoccupied for a long time
- Loss of Use Coverage, which may cover alternative lodging costs following a disaster
- Personal Liability Coverage, which may cover certain liability lawsuits
There are many other coverages that may be available through home policies and appropriate in certain situations. Residents who need help exploring coverage options and selecting the right ones for their situation should speak with an experienced insurance agent. An agent will be familiar with what coverages are available, and they can explain the differences between coverages in detail.
How are Open-Perils and Closed-Perils Policies Different?
Most homeowners policies can be broadly categorized into open-perils and closed-perils (or named-perils) policies. Open-perils policies usually afford protection against any risks that aren’t excluded in their documentation. Closed-perils policies typically cover only those perils that are listed in their documentation.
Generally speaking, open-perils policies afford more generous coverage than close-perils policies. There might be exceptions, though, so it’s important to review all policies with an insurance agent before selecting one.