Updated: August 1, 2020
As a homeowner, it is important to know and understand your coverage through your specific carrier. Having a reliable homeowners insurance plan in place will not only give you peace of mind but will protect your family and belongings as well. As a policyholder, you can make changes to adjust the amount of coverage you have, which may cause changes to your annual policy premium. Keep in mind, if you do not have enough coverage in place, you could be responsible for any out-of-pocket costs in the event of a loss. Each homeowners policy is different, and it is important you understand your coverages, so you and your agent can select the options which work best for the needs of your family.
What is covered?
Your homeowners insurance is made up of coverages which will pay to repair or replace your belongings and your home should they be damaged by certain perils such as fire, theft, or windstorm. These coverages may include, dwelling, personal property, loss of use, and liability. Edison Insurance Company offers additional types of coverage, should you choose to further customize your policy.
The ABC’s of Homeowners Insurance Coverage and Knowing What They Insure
Coverage A: Dwelling - which covers damage or destruction to your home, attached structures, and fixtures in your house like built-in appliances.
Coverage B: Other Structures - protects physical structures on your property and not attached to your home. For example, detached structures such as garages, storage sheds, and fences.
Coverage C: Personal Property - covers the contents of your home, including furniture, clothing, and appliances if they are damaged, destroyed, or stolen by perils covered in the policy.
Coverage D: Loss of Use - will pay for additional living expenses if your home is inhabitable during repairs.
Coverage E: Liability - Protects against financial loss should you be sued and found legally responsible for someone else's injury or property damage.
Coverage F: Medical Payments to Others - covers medical bills for those injured on your property. This coverage may also pay for some injuries which may happen away from your home.
What is Not Covered?
While your homeowners insurance covers many types of perils, there are exceptions, and it depends on your particular policy. Certain events, including neglect, intentional loss, earth movement and settlement, power failure, war, nuclear hazards, or other circumstances may not be covered within your policy. Another peril which is not covered under most standard homeowners insurance policies is flood insurance. Usually, flood insurance would need to be purchased as a separate standalone policy. However, Edison Insurance Company offers a certified endorsement to qualifying policies which is not offered through many other private carriers. If your property does not qualify for Edison Insurance Company’s endorsement, be sure to speak with your agent obtaining flood coverage through the National Flood Insurance Program.
Your home is likely one of the largest financial investments you will make. In the event of a fire, flood, or natural disaster, this investment can disappear in a matter of minutes, even seconds. Your insurance policy can cover not only damage, but it can save you from financial ruin. As such, it is important you understand what your particular policy covers and what may not be covered. If you have any questions or need to make any changes to your policy, please contact us at 866-568-8922 or speak with your agent.