What Does Homeowners Insurance Really Cover? A Breakdown for New Buyers

When purchasing a home, you’re making a significant financial commitment. For many people, these transactions represent the most expensive investments they make throughout their entire lives. Unfortunately, even responsible homeowners and diligent maintenance cannot ward off every possible accident, making it necessary to fully understand and address homeowners insurance needs.

How Does Homeowners Insurance Work?

Also known as home insurance, these policies are sculpted to financially protect homeowners, their properties and their financial interests. They can offer multifaceted fiscal security, potentially assisting in your response to many types of incidents and losses. In the event that a covered event occurs, you can file a claim against your policy. If approved, your insurance carrier may issue a payout up to your coverage limits and minus applicable deductibles.

What Can Policies Cover?

Now that you know how your policy can render financial aid, you’ll also need to understand the incidents and situations in which you may receive aid. Although exact details may vary, many standard homeowners insurance policies can help manage losses and expenses arising from the following situations:

• Someone is injured while visiting your home, or by you or another insured (e.g., children and pets) elsewhere
• A neighbor or guest’s property is damaged in an incident for which you’re at fault
• Your home’s structural elements are damaged by a covered peril, often including fires, windstorms, burglaries, vandalism, explosions and hail
• Your personal belongings, such as furniture, electronics and clothing, are damaged or stolen
• You’re forced to vacate your home due to a covered peril and must pay for alternative living arrangements or additional transportation costs

When Do New Homeowners Need Coverage?

Homeowners are not typically subject to sweeping laws regarding insurance, but if you’re taking out a mortgage, you’ll likely need coverage. Many lenders require you to maintain a home insurance policy until you’ve fully paid off your loan to protect their own interests. Coverage should typically be active at the time of closing on your new home.

We’re Here to Help

Contact Viva Insurance Services today to learn more about homeowners insurance or get a free quote.

This blog is intended for informational and educational use only. It is not exhaustive and should not be construed as legal advice. Please contact your insurance professional for further information.