You would assume that homeowners insurance would cover your home and its contents in case of a disaster, theft, vandalism, or other type of damage. But did you know that it also covers liability for accidents? For example, if someone visiting your house trips and falls on your garden hose or stumbles over a low spot on your property, you could be held responsible. It’s easy to protect your home from factors you can control. Homeowners insurance helps protect you from unpredictable factors.
Basic Homeowners Coverage
Most homeowner insurance plans cover basic dangers, such as loss due to lightning, theft, glass damage, and vehicle or aircraft damage. That’s right—although a rare occurrence, if an airplane or falling debris landed in your home, its usually covered under basic homeowners.
Additional Coverage
Homeowners insurance can also cover expenses that are related to disasters or destruction that occur on your property. For example, if a tree falls on an exterior structure such as a shed, you are going to have to pay to have the tree and all the debris removed from your property. If the tree damaged other trees or shrubs as it fell, you may want to fix that damage. If you are covered by homeowners insurance, costs associated with these added inconveniences should be covered.
The Extras
Homeowners insurance also covers situations you may never have considered. If your identity is stolen, homeowners insurance can cover unauthorized charges to your credit card. If you are riding your bicycle and it is damaged when sideswiped by a car, your homeowners insurance could replace the cost of the bicycle. If you cause damage to someone else’s property while driving, your homeowners insurance could protect you from the other person’s claims. It even covers liability from injury caused by your pets.
Liability Coverage
If you are entertaining guests for a holiday party and one of them slips on your icy front steps, you could be held liable. But did you know that you could be held liable even if uninvited guests or trespassers are hurt on your property? If you are in the process of building your home, you don’t have any contents or valuables to protect. But what if a curious neighbor comes poking through your unfinished home just to check out how the building process is going? It’s fun to walk through homes under construction and get a glimpse of what the inside of the home is going to look like before the walls are constructed or doors are installed. But if one of those nosy neighbors steps on a nail while walking through the house, you may be responsible.
Protect Yourself
Purchasing homeowner’s insurance is the first step in protecting yourself from liability. But you can prevent damage and injury to others and avoid having to hassle with claims or risk an increase in your insurance rates. Stopping injuries before they start will prevent you from having to really find out what your homeowners insurance covers.
- Make sure you have smoke detectors in every room of your home — and ensure that they function properly — to stop fires before they can cause significant damage or injury.
- Have your electrical system inspected periodically as well.
- Clean out the lint filter on your dryer to help prevent fires.
- If you have a pool make sure fully fenced, with a locked gate.
When you purchase homeowners insurance, you are gambling on the fine line between cost and risk. You are paying for coverage that you may never actually need. However, living without insurance is a gamble too; if your home suffers damage, or if someone on your property is injured, having a comprehensive homeowners insurance policy can save you from spending your life savings trying to pay for the damage.
About the author
Richard G. Hamilton is an insurance content contributor for homeowners and auto insurance companies in Canada. He recommends checking car insurance rates with Kanetix, a car insurance comparison site, including car insurance Ontario quotes.
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