Three Essential Types of Coverage Included in a Standard Homeowners Insurance Policy

Your home is certainly one of your most important investments. Therefore, it is imperative to ensure that it is protected from unforeseen losses that can be caused by fire, theft, explosions, vandalism and wind. As the homeowner, you should also be protected from liability if someone is harmed on your property. To mitigate the risks of these unforeseen damages, it is advisable you buy classic car insurance. Homeowners Insurance allows you to transfer risks of loss to an insurance company. Even though it is similar to renters insurance, homeowners insurance has special provisions for real property owners. Here are the four essential types of coverage included in a standard homeowners insurance policy.

Coverage for the Structure of Your Home

This part of your policy covers repair or rebuilding costs, if your home is destroyed or damaged by hazards such as fire, wind, lightning and other disasters, indicated in your policy. Most policies also cover damages caused to structures detached from your homes, such as a gazebo, tool shed and garage. In most cases, these structures are covered by about 10 percent of the insurance amount you have on the structure of your home.


Coverage for Personal Belongings

Personal belongings refer to items such as clothes, furniture, sports equipment and other items listed in your policy. Most insurance firms provide about 50 to 70 percent of the insurance amount to cover your key personal belongings. Depending on your insurance company, this part of the policy may also include off-premises coverage. This means that your belongings are covered anywhere in the world.

Protection from Legal Liability

Homeowners insurance also protects you from losses caused by lawsuits for property damages or bodily injuries that you or your family members can cause to other people. A liability protection policy may also pay for the cost of defending you in court and any court awards. You can also buy an excess liability protection policy that offers a broader coverage, including claims against slander and libel. A liability policy may also provide no-fault medical coverage, which pays for the medical expenses for injured person.

These are just some of the key reasons to buy homeowners insurance NJ. Regardless of the size of home or the length of time it has been in existence, it is imperative to make sure that homeowners insurance is included in its budget. To save money on your homeowners insurance, consider combining your NJ auto insurance with your homeowners insurance policy. For more information about Sanford Insurance in NJ, please go to