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Your house is very likely your most expensive asset. You don’t want to leave that asset unprotected. This is why you have homeowners insurance. Read ahead to find out what homeowners insurance does and doesn’t cover.

What Does Homeowners Insurance Cover?

A homeowners insurance policy will offer you coverage for property damage that is outside of your control. It applies to perils like housefires, windstorms, and hailstorms. It also applies to man-made problems, like vandalism and theft. So, if your windows break because of an aggressive hailstorm or a burglar, you can turn to this insurance policy for help regarding the repairs.

You can add more features to your homeowner’s insurance plan to increase your financial protection in times of distress. What are some features you can add?

  • Personal property coverage. This coverage can help you replace and repair personal belongings that were damaged or stolen.
  • Liability insurance. This can help you when someone gets an accidental injury on your property. It can cover costs for medical payments, property repairs, and even legal fees in case someone decides to take you to court over the accident.
  • Coverage for additional living expenses. This will cover the costs for temporary housing and related expenses when it’s unsafe to stay in your house. For instance, you might stay in a hotel for several weeks after a house fire.

What Doesn’t Your Homeowners Insurance Cover?

There are a variety of problems that your homeowner’s insurance doesn’t cover. It won’t offer coverage for issues that are considered your responsibility. So, if the company sees that you have neglected a problem and let your house suffer in disrepair, they may not consider your claim.

What other problems are exempt from homeowners insurance?

  • Damages from earthquakes and overland flooding.
  • Damages from infestations of vermin, termites and other insects.
  • Damages from animals that you currently own. So, if you have a dog that tears up your whole living room one day, your insurance plan will not come to the rescue.

What Can You About These Exceptions?

If homeowners insurance won’t cover it, what will? Well, this is exactly what an emergency fund is for. An emergency fund is a collection of personal savings that you can dip into to cover urgent, unexpected expenses, like home repairs. You can rely on it to help you pay for problems that your home insurance doesn’t even touch, like a mouse infestation that is skittering around your basement. You could use your savings to pay a pest control expert to come in and make your house infestation-free.

If you don’t have an emergency fund, you could look to an online loan as a solution. Before filling out an application, double-check that the loan is available in your state. So, if you live in Phoenix, you’ll want to look for loans in Arizona to help you with your emergency. You don’t want to take time looking at a loan that you can’t even access in Arizona!

What About Renters?

If you’re a renter instead of a homeowner, you don’t have to feel left out. You can sign up for renters insurance. The benefit of renters insurance is not necessarily in the property damage since the landlord is responsible for the building. However, renters insurance can offer coverage for your personal belongings in cases of disaster, theft, or vandalism. It can also offer liability coverage in case someone injures themselves in your rental space.

Don’t let your assets go without insurance. Protect your home and your finances all at once.