Your homeowners insurance policy is built to protect against a variety of events that can cause you to suffer a loss. These events are known as perils. A standard home insurance policy (HO-3) will protect your home’s dwelling against open perils. There are also the following 16 named perils a standard home insurance policy (HO-2) or custom named peril policy will protect your possessions against:
1. Accidental escape of water or steam
3. Breakage of glass
5. Falling objects
6. Fire or lightning
7. Freezing and thawing causing water to back up under the roofing
8. Freezing of plumbing, heating, and more
10. Riot or civil commotion
13. Vandalism or malicious mischief
15. Weight of ice or snow/sleet
Several perils are covered but homeowners insurance is not comprehensive. Though many perils are covered, a standard home insurance policy will cover only your personal property against named perils. Meaning you’ll receive protection but only for perils specifically listed on your policy. There are three main categories in which such perils reside: protection for your home, protection for your property, and liability coverage for your family. Let’s take a closer look at the protection you’ll receive.
How Homeowners Insurance Protects Your Home
An HO-3 policy consists of six different coverages. Coverage A: Dwelling, is the most predominant form of protection. It is here that homeowners enjoy the protection for their homes. Should your home experience a loss, Coverage A is there to help you mitigate the cost of restoring your loss. A common example is hail damage to your roof. The Dallas/Fort Worth area is well aware of the damage hail can cause making homeowners insurance an important step in staying prepared.
Additionally, your home insurance coverage should be adequate to cover your home if suffering a significant loss such as a fire. Homeowners will need to maintain coverage capable of rebuilding their homes should the unthinkable occur. Overall, the main focus of your home insurance coverage is protecting your home’s structure from harm and to help you restore it should a loss occur. Dwelling coverage in an HO-3 policy protects homes based against open perils.
Many homeowners will also require protection for other important structures on their property. Your attached garages are also protected under Coverage A, but what about detached garages? Sheds? Fences? This is where Coverage B: Other Structures coverage comes in. You’ll receive the same protection from the same perils for the other important structures on your property.
Personal Possessions are Also Covered by Your Home Insurance
When enrolling in home insurance, you’ll also receive protection for your personal property, outlined in Coverage C: Personal Property. Here, the focus of protection is your possessions including your furniture, appliances, electronics, clothing, etc. You’ll also enjoy these protections whether or not your personal belongings are inside of your home or not. Common perils which may cause a homeowner to file a claim for their personal property include theft, vandalism, and fires. It is important to stay protected but policy limits do exist. Homeowners with possessions of considerable value may require additional coverage options to avoid a coverage gap.
Your Home Insurance Policy Protects Your Family From Liability
Liability protection is more important than ever for homeowners. With the rising costs of restoring damaged property, medical bills, and legal fees, it is important to protect you and your family from such events. Your homeowners insurance policy comes with two great coverages known as Coverage E: Personal Liability and Coverage F: Medical Expenses. These coverages protect against events such as the following:
A visitor injured while on your property
You or a member of your household causing damage to your neighbor’s property
It should be noted that while medical expenses are covered, they do not apply to members of your household. Liability protection for damaging another’s property is also only valid should the damage be caused by an accident. Intentional damage and vandalism do not qualify for protection.
Supplementing Your Homeowners Insurance Policy
There are several perils your home may face that aren’t covered by your standard home insurance policy. Through endorsements, additional coverage options, and changing your homeowners insurance policy, you can gain even more protection. Take a closer look at some of the options you have when searching for additional protection and speak with an agent to find the best options for your needs:
- Flood Insurance- Floods continue to devastate cities across Texas and the United States and you may be surprised to learn that flood damage is not covered by your homeowners insurance. The Dallas, TX, region has a moderate risk of flooding over the next 30 years according to Flood Factor making it a threat to residents in the area. As many as 1 in 4 flood claims come from homeowners who live outside of high-risk areas. Adding flood insurance helps protect against a common threat to your home by helping you restore flood-related losses.
- Umbrella Insurance- Liability protection is important for every homeowner but for those with more to lose, it is a critical component. The median household income in Flower Mound, Texas, is $137,285, according to the U.S. Census Bureau. This is considerably more than the Texas state average of $61,874. In the event of a lawsuit, your assets could become vulnerable without the right protections in place. Avoid losing what you’ve worked hard for by purchasing umbrella insurance that can cover your valuables after you’ve reached your policy limits.
- Scheduled Personal Property Coverage- Your homeowners insurance policy will protect your personal belongings, but there are policy limits. If you are looking to protect valuables with values that exceed your coverage, this endorsement can help you protect valuables from destructive perils.
- Extended Replacement Cost- Although not all losses are completely devastating, some are and can exceed the amount of coverage you have for your home. For example, one of the rarest perils a homeowner may face is also the most expensive, a house fire. If you suffer a total loss and require replacing your possessions and rebuilding your home, extended replacement cost coverage can help you cover losses outside of your homeowners insurance’s coverage.
- An HO-5 Homeowners Insurance Policy- HO-3 policies are the most popular form of home insurance coverage on the market, but for homeowners looking for a more comprehensive approach, HO-5 policies may be a better option. The key difference is that with an HO-5 policy, you’ll be protected against open perils instead of named perils for both dwelling and your home’s contents. Meaning each peril is covered except for those listed as excluded. Of course, with more protection, your premium will be more under this type of homeowners insurance policy. Discuss the level of coverage your home requires with an agent and see if this level of coverage is right for your needs.
Freedom Insurance Group Serves Homeowners Throughout North Texas
By offering multiple insurance carriers, we can find you the best possible price for your home insurance coverage. Our roster of 25+ top-rated insurance agencies includes Progressive, Travelers, and Allstate. Homeowners are looking to protect their homes and valuables but shouldn’t have to overpay to do so. At Freedom Insurance Group, you don’t have to.
We start by building personalized home insurance coverage for you based on your coverage needs. Through comparative shopping, bundling, and applying personalized discounts, we can find you the best option instead of being tied down to a singular brand. Proudly headquartered in Flower Mound, Texas, we know what Texans need and expect from their homeowners insurance provider. Contact us today or get a free quote to see how much you can save for your home insurance. Our average client saves 40% on premiums when compared to the average homeowner in Texas!