What Are the Functions of Home Insurance?

​There are many types of risks that homeowners’ insurance can shield you against. Homeowner's insurance can provide coverage for many things but cannot help you with other things like damage from a flood. However, if you know more about home insurance, you'll undoubtedly know which it includes and which it doesn't. Here are the functions of home insurance.

Repairing Structural Damage
Homeowners' insurance provides coverage for the repair or rebuilding of your home. You'll need this coverage if some destructive event such as fire or tornado consumes your home. However, the cost of reconstruction may not precisely match the original purchase price of your home. Also, take note that some policies can only cover structural damage due to hurricanes and earthquakes. So, make sure that you understand your coverage as you buy your homeowner's insurance.

Replacing Personal Property
Most homeowner insurance policies provide coverage for personal possessions, and this may include jewelry. Your standard coverage could be around half to three-quarters of the entire value of your home. However, you always have a choice whether you can buy coverage for your valuables, or you can handle the cost of rebuying them.

Paying for Alternative Living Arrangements
When your home is gone or severely damaged, many homeowners’ policies can cover your extra expenses in case you need a temporary place to stay. The expenses covered include lost rent, hotel bills, and restaurant meals. However, coverage may have a limit in terms of a maximum dollar amount. Take note of limits if you want to avoid disputes without your insurer later on.

Reimbursement for Third-Party Liability
If a dangerous situation happens to one of your guests in your home, then you may face legal liability. Thus, homeowners' insurance may cover your legal expenses, including attorney's fees and costs of court. Many insurance companies also offer higher coverage, provided you pay an additional premium.

Some Final Words
Homeowners’ insurance is an indispensable part of life. If you’re staying in a house with your family, you need homeowners’ insurance for four big reasons. Otherwise, you might end up breaking your bank for home repairs and replacement. Without home insurance, you’ll also face legal charges alone in case someone gets injured in your home. Thus, you need to purchase home insurance as soon as you settle in your home.

At AllRisk Auto Insurance, LLC, we do our best in making sure that our clients are well-protected with affordable and comprehensive policies. We make sure to go the extra mile to help you with your needs. To learn more about how we can help you, please contact our agency at (360) 693-4044 or Click Here to request a free quote.