Homeowners insurance policy protects your most valuable possessions - your home. What exactly does Homeowners Insurance cover? A house is more than just the brick or concrete structure, it is also the most personal belongings inside and around it, the household/fishing supplies inhabiting it and the visitors who come to see you. So it is with your possessions as well. Your house becomes a virtual castle with all the expensive gadgets, furniture, rugs and other paraphernalia that make up your abode. It is also a place where you go out for fun and comfort - and where you are sure to run into various situations which could cause damage to your home or possessions.
When you lose your house to a natural disaster, you can be compensated for your losses by supplemental claim homeowners insurance. Certain disasters are more likely to occur in certain areas than others, such as tornadoes and hurricanes. Other disasters are less likely to occur in certain places than others, including fires, earthquakes and the like. Thus, the geographical area covered by your supplemental homeowner's insurance and what is covered under your primary insurance policy will depend on the particular policies you have taken out.
There are two types of damage covered by your supplemental homeowner's insurance policy: physical damage and loss of income or payment. Physical damage is mostly dealt with through replacement costs for replacement items. In cases of floods and similar natural disasters, for example, you might have to replace carpets, drywall, doors and windows, appliances, etc. The lost income or payment, however, deals with the value of your income - how much money you would have made if your house hadn't been destroyed.
It is important to note that the policies you receive under a standard homeowner's policy do not include any liability or additional costs that are not addressed through the primary policy coverage. For instance, if you have a car that is damaged, you might be able to get a rental car. However, if you are covered through a standard homeowner's policy, you will need to get reimbursement from your insurance company for this expense out of your own pocket. Under a supplemental homeowner's insurance policy, you will only need to get reimbursement for the actual cost of the damage to your car, not for a portion of it. In addition, any deductible that you have will only apply to the damage covered under the supplemental policy, so you won't have to worry about paying any deductible at all.
Another thing to keep in mind is that a lot of your supplemental homeowner's insurance coverage will come from areas prone to natural disasters. If you live in any of these areas, you should have a basic homeowner's policy that includes earthquake insurance, so you know you're covered if something serious happens. However, there may be some parts of your home that are prone to flooding, so you may want to get flood insurance as well. Most of the time, your flood insurance will only cover damage to the home itself, but it can definitely cover things like your basement if you live in an area that has a lot of water in the ground.
Supplemental homeowners insurance isn't just meant to provide coverage when something happens. It can also be used for various purposes, such as when your belongings are damaged or stolen. Depending on the policy, some coverage can even include damages to your personal property that you carry around with you on a regular basis, like your laptop computer. In many instances, your coverage will simply pay for your deductible, so you will never have to worry about not having enough money to replace your stuff. Find out more details in relation to this topic here: https://en.wikipedia.org/wiki/Home_insurance.
