Nowadays, it’s rare to come across valuables that are unprotected. iPhones have tracking devices, cars have impressive security systems, and pets have microchips. And yet one of your biggest purchases in life is often left without an adequate backup plan: your home.
Salt Lake home insurance provides financial protection against losses caused by disasters, accidents, and thefts. If all your belongings get destroyed, it gives you the means to recover a sense of stability and sanity. In this post, we will go over the four standard damages that a good homeowner’s policy should cover.
Coverage for the Structure of Your Home
Your Salt Lake home insurance will pay to repair or reconstruct your house if it gets damaged or destroyed by a fire, a hurricane, hail, lightning, and any other natural disasters listed in your specific policy.
Most homeowner’s policies also cover the detached structures of a home like a garage, tool shed, or gazebo — typically for around 10% of the amount of insurance you have on the structure of your house.
It’s important to note that standard homeowner’s policies do not cover, and therefore will not pay for, damage sustained from a flood, earthquake, or general wear and tear. When you buy Salt Lake home insurance, remember that you should purchase enough coverage to cover rebuilding your home.
Coverage for Your Personal Belongings
Consider purchasing Salt Lake home insurance for furniture, clothing, appliances, and other personal belongings in case they get stolen or destroyed by fire, hurricane, or other insured catastrophes. This coverage is typically 50-70% of your home structure’s insurance.
The best way to figure out how much coverage you need is to conduct a home inventory. Personal belonging coverage also protects some items that are stored off-premises. Expensive items like jewelry, art, and furs are also covered but typically come with a dollar limit if they are stolen. Even trees, plants, and shrubs are covered under standard homeowner’s policies, typically for around $500 per item, but trees and plants are not covered for diseases and poor maintenance.
Some Salt Lake home insurance policies have extensive coverage for personal belongings while others don’t. Knowing how much coverage you’d like will simplify your insurance shopping process.
Liability Protection in the Salt Lake Home Insurance Plan
Liability protection covers you against lawsuits for bodily injury or property damage that you or your family members cause to other people. It will also pay for damage caused by family pets. If your dog throws up on your boss’s Persian rug, you can rest easy knowing you’ll be able to get it cleaned or replaced for them.
The liability portion of homeowner’s insurance also pays for both the cost of defending yourself in court and any court awards, up to the limit stated in your policy. Liability limits typically start around $100,000, but we recommend discussing the best dollar amount for your unique needs with your insurance professional.
If you have significant assets and are looking for more coverage than what’s included in the standard homeowner’s policy, you may want to buy an umbrella or excess liability policy. These policies provide broader coverage and higher liability limits.
Your liability protection will also provide no-fault medical coverage. If a friend gets hurt in your home, they will be able to submit medical bills to your insurance company. This allows expenses to be paid without a liability claim getting filed against you.
Coverage for Additional Living Expenses
Additional living expenses, also known as ALE, will pay for the extra costs of living away from your house if you are unable to live there due to damage from a disaster. It covers things like hotel bills, restaurant meals, and other associated costs above your normal living expenses that you incur while your home is being rebuilt or repaired.
It’s important to keep in mind that ALE coverage has limits—for instance, time restrictions—but these limits are separate from the amount that is available to rebuild or repair your house. Even if you use up all of your ALE, your insurance provider will still cover the total cost to rebuild your home, up to the policy limit.
If you rent out a portion of your home, ALE will also cover the rent that you would have received from a tenant if your house had not been destroyed.
How to Find the Best Salt Lake Home Insurance
No one wants to think about their home and valuables getting ruined, but it happens—far more often than we’d like to admit. Bethany insurance can help you prepare for those inevitable disasters. We provide homeowner policies to customers across the Salt Lake area and more. Contact us today to find out more.
