If a fire, flood, earthquake, or some other natural disaster were to destroy or damage your home, would you have the right insurance coverage to rebuild your house? Homeowner and Renter insurance coverage can be confusing, learn more about the basics and what is typically covered and what is not.
Homeowner and Renter Insurance, what’s covered and what’s not? In most cases, homeowner insurance pays for damage to your home and other structures on your property. It may also cover damage to or loss to personal belongings and your liability for accidents that occur on your property or for damage to others’ property. AAA recommends that you insure your home at 100% replacement cost and in most cases the package policy will have an extended replacement cost endorsement built-in.
• Homeowner insurance does not cover floods or earthquakes.
• Flood insurance is an optional coverage you may purchase as a separate policy offered through the National Flood Insurance Program.
•Earthquake can be added as a separate endorsement to your homeowner policy.
*(Some restrictions apply, not all properties are eligible for these coverages).
Renter insurance covers your belongings and personal liability similar to how a homeowner policy does but in most cases there is no coverage for the building. Typically, the landlord will have coverage for the building but not for your personal belongings, additional living expense, or your personal liability. AAA recommends that you have 100% replacement cost for your personal belongings and not actual cash value which applies a deduction for depreciation.
Want to learn more about what flood & earthquake insurance coverage makes the most sense for you? Contact one of our AAA Insurance Professionals today to add one of these homeowner or renter insurance coverages today.
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