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Why You Need More Than Just Basic Homeowners Insurance Coverage

Most people know they need homeowners insurance to protect their homes, but many must understand that it also includes liability coverage.

If you cause damage or injury to someone else, this liability coverage pays for your legal expenses and medical bills. It’sIt’s an essential part of your homeowner’shomeowner’s insurance policy.


Homeowners insurance covers your property and your belongings inside it in case of damage or loss. It also provides coverage for liability – the legal costs incurred by you or your family members in case of injury, death, or property damage on your property.

Liability coverage can be included in a standard homeowners policy or can be purchased as a separate coverage. Liability can also protect you against libel and slander claims.

The level of liability protection you choose is critical. You need to ensure your insurance includes enough of this coverage to cover the cost of any medical bills or lost wages that could arise from an accident on your property.

Damage to Other People’sPeople’s Property

You need more than just basic homeowners insurance Newark DE coverage to protect your property and family from damages that occur due to unexpected events. This includes liability protection.

A good example is when a tree falls on your neighbor’sneighbor’s property, damaging their house, shed, or fence. The damage could cost thousands of dollars, depending on the extent.

However, it may be covered under liability or damage to the property of others’ policies. The insurance company will pay for the damaged items if you can prove they were caused by someone else’s negligence or intentional act.

In addition to these coverages, you can claim trespass to land or chattels. This can be caused by a guest, neighbor, or someone not a member of your household.

Additional Living Expenses

In the event of a significant home disaster, such as a fire or hurricane, you may not be able to live in your own house for months while it is being repaired. Luckily, homeowners policies offer additional living expenses (ALE) coverage that helps cover temporary housing and other living expenses until you can return home.

ALE, also known as loss-of-use coverage, reimburses you for hotel and restaurant bills, rent, and other expenses that help keep your standard of living in line while your home is being repaired or rebuilt. The amount of coverage will depend on the policy.

Typically, most homeowners’ policies provide ALE coverage at about 20 to 30 percent of the dwelling insurance limits. However, you can increase this limit or get an ALE endorsement.

Replacement Cost

Most homeowners’ policies offer coverage on a replacement cost basis, meaning they cover the cost to repair or replace your home and personal property at current prices. However, this number may differ from your home’s market value, depending on your home’s age and style, your improvements, and local construction costs.

In addition to replacement cost, some insurers offer additional coverage, such as extended replacement cost, that considers a percentage, often 25 or 30 percent, above your dwelling coverage limits in the event of a covered peril. These endorsements are typically more expensive than standard dwelling coverage, but they can provide more excellent protection over the long term.

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