Buying a home is no small decision – or investment. Along with owning a home comes a lot of responsibility, including getting home insurance. You’re probably wondering what is covered by Alabama home insurance. You know that insurance is probably a good idea, but what exactly does it do besides depleting your bank account? We’ll explain what’s typically covered by home insurance.
What does Alabama home insurance cover?
1. The house itself.
Well, that makes sense, right?
Home insurance protects the dwelling of the house itself. It provides coverage for covered losses such as fire, vandalism, lightning, and hail. You have to read the policy to see exactly which losses are covered and which aren’t, however. Not all losses are covered by home insurance, which comes with exclusions that the insurance company won’t pay for. To give an example, flooding is a common exclusion that isn’t covered by home insurance. You would need a separate flood insurance policy.
Anyways, you’ll need to consider how much property insurance you’ll need for your home. It’s best to insure your home for the amount it would cost to completely rebuild it from the ground up if it were destroyed by something like a fire (this is called the replacement cost.)
2. Other structures.
Your home insurance likely includes other structures coverage, which can protect detached structures on your property, such as sheds. It can also cover things like fences and your driveway. You probably have a certain limit of coverage for these things – typically, you’ll have 10% of the coverage you have on your dwelling as a limit for your other structures.
3. Personal property.
The personal property section of your home insurance protects the contents of your home – for example, furniture, clothing, electronics, and so on. The personal property section of your home insurance can allow for you to be reimbursed if your belongings were destroyed by a covered loss, such as a fire or burglary. It can even protect your belongings if they’re not in your home, like if your car gets broken into and someone swipes your stuff. Cool, right?
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To find out how much insurance you need for your belongings, you should take a home inventory. A home inventory is just a list of all the belongings in your home and their value. If you ever have to file a home insurance claim, you’ll thank yourself for taking the time to make this list. It will save you a lot of time when it comes to listing the items that need to be replaced.
Pro tip: When you’re insuring your personal belongings, insure them for their replacement cost value. That means that you can get enough money to replace the belongings at today’s prices. If you insure your belongings for their actual cash value, you’ll get reimbursed for the value of the items at the time of the loss – meaning their depreciated value. And that might not quite be enough to replace your treasures.
4. Additional living expenses.
What if you had a loss to your home that forced you to move out for a while? You’d probably end up accruing some expenses that are above and beyond your normal living costs – hotel bills, restaurant bills, and so on. Your home insurance can help you cover these expenses so long as you had to leave your home due to a covered loss that made the house uninhabitable. (Just be sure to check the terms of the additional living expenses coverage – you’ll probably have a limit of coverage, and you probably won’t be able to stay in a five-star hotel!)
5. Liability coverage.
Liability insurance can help you if someone sues you for causing them property damage or bodily injury – for instance, if someone slipped and fell on your driveway and got hurt. The liability section of your insurance can help you cover the legal expenses of the lawsuit and any court-ordered awards or settlements. It may also include medical payments coverage, which allows the injured person to have their medical bills paid without the ordeal of a lawsuit.
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Alabama home insurance can do a lot more than just protect your home against fires. It’s a financial safety net that can protect you from a variety of losses and expenses that could really put a beating on your bank account. That’s why it’s important to take some time to really read through your insurance policy and get to know what it says. That way you won’t have any nasty surprises if something you think is covered actually isn’t – that’s the worst surprise ever.
And if you need to get Alabama home insurance, we can help. Our team of agents can get you quotes for your insurance so you can get great coverage at a great rate – and save money on your home insurance. We’re experts at making insurance easy and headache-free. Get started with your home insurance quotes by filling out our online quote form or giving us a call today.