It's Insured: 4 Sub-Policies Included In Your Home Insurance

You just purchased your first home, which means you've probably also just purchased your first home insurance policy. If you're not familiar with home insurance, you might not realize that there are actually several sub-policies included in your coverage. Each of those sub-policies protect different aspects of your home and property. To get the most out of your home insurance, it's important that you understand the policy before you need to use the coverage. Here are four sub-policies you'll need to understand in an emergency.

Home Repair and Replacement

The first part of your home insurance policy will include your home repair and replacement coverage. This portion of the policy will be important if your home is ever damaged or destroyed due to fire or other disasters. Depending on the severity of the damage, your home will either be repaired or replaced after a catastrophic event.

Additional Buildings

You might not realize this but the outbuildings on your property can be added to your insurance policy. Outbuildings include sheds, workshops, or free-standing garages that aren't attached to your home. If you have any outbuildings on your property, you'll need to read your policy to make sure they're covered. If you don't see a sub-policy for your outbuildings, you'll need to speak to your insurance broker about having the coverage included in your policy.

Personal Property Replacement

The personal property replacement portion of your home insurance policy will cover the replacement of your personal property in the event of a catastrophic event. To ensure that all your property is properly replaced, you'll need to keep accurate records of everything you own. You should store all the receipts for your big-ticket items with your insurance policy paperwork. It's also a good idea to keep photographic or video documentation of all your property. This will help your insurance company process your personal property claims quicker.

Additional Living Expenses

If your home is destroyed in a catastrophic event, you'll need to find somewhere else to live until your home can be repaired. Unfortunately, if you still have a mortgage on your home, you'll have to continue making those payments as well. The additional living expense sub-policy will cover your rent until your home is inhabitable again.

If you have a new home insurance policy, you need to familiarize yourself with your coverage. Don't wait until you're faced with a catastrophe to find out what those sub-policies mean. For more information, contact Callis & Associates or a similar organization.