Updated: Mar 9, 2022
What is a Homeowners Insurance?
Homeowners Insurance is an insurance policy that you buy from an insurance provider which helps protect your home and family from unexpected events or disasters. It generally provides coverage to both your interior and exterior parts of your home.
Though it is not mandatory to have Homeowners insurance by law, it is wise to invest in an insurance to protect your home and family and have peace of mind from unexpected events and disasters.
If you have a mortgage for your home, then Lenders may require you to have Homeowners Insurance or Hazard Insurance as a mandatory element before closing to provide financial protection against losses or unexpected events.
Homeowners insurance has two parts, part 1 gives the property coverage and part 2 gives the liability coverage. There are various types of coverage and the most popular one is the HO3 coverage, which covers damages to your home except the ones the policy excludes such as flood or earthquake Insurance which has to be bought separately according to the need.
Unusual things that your Homeowners Insurance may cover:
Falling Objects and Drones
Homeowners Insurance typically covers your home from falling objects or space debris such as satellites, meteors, asteroids etc. Though the chances are slim, you are protected while it happens.
Most homeowners insurance covers property damage or liability caused by your recreational drones. The coverage purely depends on the type of insurance policy which has varied coverage and restrictions. If you fly Drone for business purposes, then your drone may need Commercial drone license.
Spoiled food , Wine or Expensive ingredients
Most insurance policies typically cover the cost of spoiled food (Frozen and refrigerated food) from $250-$500 if it is due to Power outage or the damage is caused by Covered Peril. It does not cover the cost if the refrigerator is broken and it can also be added for a certain premium to your existing insurance if not already covered.
It may cover the cost of expensive food, for example if you have an expensive wine collection or an expensive imported olive oil and it is damaged due to the covered peril or personal property damage ( burst pipes), then the assessor may visit to make sure you have the stated loss. It is also required that you inform to the insurer about the coverage of expensive food items before the occurrence of damage.
Dog bites, Animal Stampede, Wild animals
If someone is bit or injured by your dog, homeowners insurance may cover the damage up to a certain limit. Some dogs may do some serious damage and require additional insurance coverage limit. This is usually a one time deal and the policy holder may have to pay by himself the second time.
If a homeowners home is adjacent to a barn or stable and something suddenly spooked the animal and it damages the homeowners property, then the damage is covered by the Homeowners insurance as they are not their own animals. Some policies cover the property damage caused by wild animals but not the personal property.
Kid's stuff at college
The kids who are relocating to a dorm room in campus for college education purposes, the insurance information institute states that most of the homeowners policy cover their items. Although expensive personal belongings such as bicycle, laptops may not be covered in which case it is advisable to get a renter's insurance.
Some policies cover the cost of injury caused by trampoline accidents if you abide by the rules of precaution by the policy. Some consider it to be very expensive and exclude the coverage from the policy. Each policy and their coverage limits are different. If your child is injured while playing on a trampoline, the policy may cover partial charges first time and may advise to get rid of trampoline as they won't be covering future costs.
There was a case where the homeowner was supposed to have a wedding in their backyard and due to fire, they were pushed to have the wedding in a hotel which cost lot more. They were able to file a claim under the "Loos of Usage" coverage in the policy.
Identity Theft and Unauthorized use of ATM and credit cards
If you a victim of an identity theft and some nefarious person racks up the credit bills on your name, it might be a tedious process to straighten out. Some homeowners policy helps cover the cost of fixing credit reports, loss of wages, phone bills and legal expenses. If your basic policy doesn't cover, you may add it for a small premium. Most of the homeowners policy cover up to $500 per incident of unauthorized use of ATM or credit cards.
The events and items covered by your insurance policy differs based on your policy and insurance provider. The conditions and limitations of the coverage vary upon your specific policy. Inform insurance company ahead of time if you have any expensive structures in your property. This will act as a documentation for coverage in case any mishap happens.