Buying a home for the first time is exciting. For many, it fulfills the lifelong goal of owning their dream home. However, it can also be an overwhelming time in a person’s life. The process of buying a home can be complex, as there are many different steps to go through. For some people, this can include buying home insurance. Before doing so, you must educate yourself on the intricacies of home insurance. That is why it is generally best to retain the services of an experienced Pennsylvania real estate attorney for guidance.
What Coverages Are Included in Home Insurance?
When a person purchases home insurance, most policies generally include coverage for the following:
- Structure: This insurance is coverage for when your home is damaged or destroyed by a covered peril and needs to be repaired or rebuilt. You should know that this coverage is not the same as the amount you paid for your home, but a set coverage for the amount it takes to rebuild your home from the ground up.
- Contents: This coverage exists if your belongings are damaged or destroyed. Generally, it is set between 50 and 70 percent of the home’s structural coverage. That being said, you may add a rider policy to get more coverage for high-value items.
- Liability: You will use liability coverage if someone is injured on your property. When this happens, the liability part of your policy can pay for medical, rehabilitation, or funeral expenses, as well as necessary legal fees.
- Other structure: If your home has a detached garage or shed that is destroyed by a covered peril, this insurance exists to repair or rebuild it.
- Additional living expenses: If a home is destroyed and needs to be rebuilt, this coverage is in place to help with living expenses while you are displaced. This can include hotel stays and food bills.
What are Covered Perils?
Home insurance policies cover certain perils, however, they do not cover all types of disasters. Generally speaking, standard policies cover damages that are caused by fire, windstorms, hail, lightening, theft, vandalism, explosions, and riots. Water damage from freezing or bursting pipes may also be covered.
While this is true, damage from floods or earthquakes is not usually covered. These types of natural disasters usually require separate policies for those who live in high-risk areas. Do not hesitate to reach out to our firm for any further questions you may have about home insurance.
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Friedman Schuman is an experienced and dedicated legal resource for clients throughout Pennsylvania. We proudly serve clients facing a wide range of legal matters. If you require the services of an effective attorney, please contact Friedman Schuman today to schedule a consultation.