What Does Your Home Insurance Cover?

Home insurance policies can be overwhelming and a bit confusing. Kevin Clingan of Clingan Insurance Group joined me to discuss some of the things you need to know about homeowner's insurance and the different types of coverages available.

Dwelling Coverage

A homeowners policy is broken down into four main parts. The first part is your dwelling coverage. The dwelling coverage is the insurance coverage to replace the home structure. If it is blown away by a tornado or if it's consumed by fire, what will it cost to replace the building is what dwelling coverage takes care of. 

Personal Property Coverage

The second piece is your personal content which is the personal property coverage. If you think about having a home and if you turn the home upside down and shook it, everything that falls out is your personal property. The structure itself is not covered under personal property, but your furniture, your clothes, your silverware, your rugs, all of that stuff that would fall out if you shook it. That's your personal property coverage.

Liability Coverage

The third area is your liability coverage. We all know that there's a pretty litigious environment in this world and somebody wants somebody to pay if they get hurt. If that happens on your property, then you're responsible for that. For example, if someone is bouncing on your trampoline and they break their leg, well, you're probably going to be liable for that.

That's going to be hundreds of thousands, 250 or 300 or $500,000 available depending on your policy limits for liability claims.

Medical Coverage

Your fourth area is your medical coverage. If somebody does get hurt on your property, then there is a portion of your policy that covers medical expenses up to that coverage amount and it'll be a relatively small number.