Homeowner’s insurance provides coverage for the average American’s most important investment: the home. Yet as many as 60 percent of homeowners from the Midwest to Salt Lake City don’t know even the basic facts about their insurance coverage—much less what happens when someone gets hurt on their property.
From bicycle accidents to dog bite incidents, a good homeowner’s insurance policy can help you save both on damages and lawyer fees in the event of a natural disaster or an accident on the premises.
Know What’s Covered—and What Isn’t
It goes without saying that knowing exactly what your homeowner’s insurance does and does not cover is essential to being a good homeowner. Most insurance policies will cover damage to your property and possessions due to fire, theft, storms or vandalism. It also covers shelter costs should you need to relocate due to extensive damage to your home.
Most standard policies will not cover damage due to floods or earthquakes, landslides, sinkholes, power failure, bad repair or faulty zoning. If you live in an area that’s along a major fault line, such as Salt Lake City, you might want to consider supplemental coverage.
Personal Injury Claims
If a visitor to your property is injured due to a dog bite or a slip and fall accident, a typical policy will cover you up to $300,000. However, the injured party and his or her lawyer may sue for a much higher amount. Homeowners can purchase umbrella liability insurance—which can cover an additional $1 million—to protect themselves against dog bite and other personal injury lawsuits.
Coverage Outside the Home
Most people don’t realize that homeowner’s insurance often extends outside the home. Homeowner’s insurance can cover damages from a bicycle accident, belongings stolen outside the home or belongings while they are traveling with you or on your person.
Make sure to take note of and appraise your personal belongings, and contact your local Salt Lake City lawyer if the insurance company covers less than the value of your personal items.