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Understanding the Terms of Your Homeowner’s Insurance

Kent A. Bennett Associates Inc. Knows that Home Insurance is Confusing

This month, we’re blogging about understanding the terms of your homeowner’s insurance. At Kent A. Bennett Associates Inc., we know how confusing homeowner’s insurance can be. In general, homeowner’s insurance policy terms include covering:

  • Exterior or interior repairs due to damage from fire, weather, or vandalism
  • Replacement value of items missing due to theft
  • Displacement expenses for the home’s residents
  • Injury of visitors to the property
  • Rebuilding a destroyed structure or compensating its value

Homeowner’s Insurance Pays for Some Interior & Exterior Repair Costs 

If your house suffers damage due to fire, hurricanes, lightning, vandalism, or other disasters, your homeowner’s insurance pays for repairs. Not all disasters are covered by home insurance, however. Destruction occurring from floods and poor home maintenance isn’t usually covered, sometimes neither is damage from fire. In an insured disaster, clothing, furniture, appliances, and most of the home’s contents are covered, if destroyed. Generally, there’s a deductible that needs paid out of pocket before homeowner’s insurance pays for any repairs or replacements.

Items Missing Due to Theft? Homeowner’s Insurance Repays Their Value

Replacement cost coverage doesn’t only cover damaged items. If anything goes missing due to theft, replacement cost coverage pays what it takes to replace it at today’s prices. When filing a claim for theft, you’ll probably have to include a police report. Just like with a damage claim, you’ll likely have to pay a deductible before getting a payout for theft.

Visitors With an Injury May Benefit From Your Homeowner’s Insurance

Having visitors to your home usually happens without incident. However, if someone suffers an injury or personal property damage while visiting your home, that’s when you need liability coverage. Homeowner’s insurance liability coverage pays for medical expenses post-injury or reimburses someone for damaged personal items on your property.

Homeowner’s Insurance Covers Displacement Costs, Rebuilding, & More

Displacement is the worst imaginable scenario in which homeowner’s insurance becomes necessary. If an event damages your home so severely that it results in displacement for a time, you’ll need Additional Living Expense (ALE) coverage. ALE covers the policyholder’s costs of living, should he or she suffer temporary displacement from the home. Homeowner’s insurance policies usually impose strict daily and total limits with this coverage. Either Full Replacement, Actual Cash, or Guaranteed Replacement Cost value coverage pays to rebuild or replace your home after displacement.


For more information about insurance, call Kent A. Bennett Associates Inc. at (800) 548-9119. Follow us on Facebook for updates. We are happy to help you with understanding the terms of your homeowner’s insurance.