In general, the words homeowners insurance automatically makes you assume that it covers only the things in your home.
However, the truth is that home insurance is going to cover you for more things than you could guess, even if it has absolutely nothing to do with you being at home sometimes.
In this list today I am going to cover the top ten things that a homeowners insurance policy covers that you probably didn’t know it did.
I am not sure if you have ever experienced the embarrassment of being told that your money is fake when you attempt to pay for something.
However, I can assure you that it isn’t a good feeling.
You feel embarrassed, and some people will even start to treat you like a criminal.
But fear not, your home insurance may cover that.
You should check your policy specifics to see under which policy provision counterfeit money is covered and how much of it your policy will cover.
Kidnap & Ransoms
If you are a movie fanatic like me then I am sure you have seen the movie Ransom, it’s probably one of my favorite movies.
The truth is, however, that none of us know what we would do in that situation or how our family would react to us being kidnapped.
Fortunately, your homeowner’s insurance may cover your ransom up to a certain amount to assist with getting you back home safely.
It isn’t something you want ever to happen, but it’s great to know there is some help if it does.
Have you ever looked at your credit report and noticed that you had a credit card or new home that you didn’t know existed?
Ever received a phone bill in the mail for a phone you don’t own.
More than likely, your Identity has been stolen, and you might not be prepared for the time and emotional rollercoaster that is to come when you try to fix it.
Your homeowner’s insurance considers your identity as personal property and may cover you for it, so learn how your policy works and how it may cover you.
Mortgage Payment Protection
If your home is destroyed by a covered loss, like heavy snow, hurricanes, or a meteorite falling from the sky.
The mortgage company is still expecting their monthly payment to come through.
Paying for anything that you aren’t using is always a bummer, but could you imagine the nerve of a mortgage company looking for payment when they know you just lost the complete use of your home?
Well, the truth is that you actually still owe them for the loan.
But don’t worry, your home insurance coverage has a clause called “loss of use,” and that will cover your mortgage payments.
Let’s face it; you aren’t going to win everything in life.
Most of us are surprised when we win anything, but on the off chance that you lose a lawsuit filed by your neighbor or your ex-best friend, your homeowner’s has you covered.
Your policy has a liability clause that will cover your court costs as well as money for your attorney or any settlements you have to pay.
It’s best to read your policy to understand its limits.
If you have ever thrown out spoiled food because of a power outage, then this is going to drive you crazy.
You could have been reimbursed for that food if it became spoiled due to a covered loss.
Did a tree fall and knock out your power? Did a storm knock out your power?
Since those are types of covered loss, and the food is considered personal property, it is covered by your homeowner’s insurance.
So, before you throw out your spoiled food, take pictures of it, even if it stinks.
You probably can be reimbursed.
Owning a duplex seems like it would be fun.
I mean, you get to live rent free because the tenant in the other unit is paying for both your mortgages.
What happens if neither you or your tenant can occupy your home due to a covered loss?
Well, your loss of use provision kicks in again, and they will pay you (up to a certain amount) the loss of income from your tenant.
As always, check your policy specifics.
Student Property (On Campus)
More than 40% of students live on campus.
If you are one of that 40%, then be happy to know that your parent’s homeowners insurance has you covered if your property is stolen, lost or broken.
If you are a parent, you can rest assured that your homeowner’s is traveling with your student to protect you and them for a covered loss of personal property.
Most people would never think to reach out to their home insurance for a case like this, but, it’s probably covered so start reaching out.
Parents Property (Assisted Living) | Insurance Covers
If you are financially responsible for your parent and they live in an assisted living property, then, just like for your student, your homeowner’s policy will cover them.
If they lose something, have something stolen, or it’s broken by a covered loss, your home insurance policy will cover the item.
Our parents are significant to us, and the last thing we want to do is hear something they cherished was lost or stolen so knowing that they are protected is always great to hear.
Read your policy specifics for how your policy will work.
Crime Scene Cleanup
I can’t imagine coming home to a crime scene.
We all have our favorite episode of CSI, Dexter, or Criminal Minds, but in reality, I am sure none of us could actually stomach a crime scene and definitely wouldn’t be able to clean it up.
Whatever the crime scene is, your homeowners will help you with covering the cost to have it cleaned up.
If this happened in your home either to you or your loved ones, the last thing you want to do is have to clean it up.
Check your policy for all of the details.
Moving Forward | Insurance Covers
In conclusion, if you aren’t sure about what is covered by your policy, it’s best to reach out directly to your insurance company.
If you were amazed at the above 10 things that were covered, then you should check out this post that goes over 65 things that your homeowners insurance will cover.
If you are in the middle of purchasing a home and haven’t started the process for homeowners insurance, then be sure to reach out to your agent, your mortgage broker, or an insurance agent about what options you have available.
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