How Does Your Homeowner Policy Respond To Total Losses?

While homeowner insurance covers individuals and families for many day-to-day claims involving water damage, roof damage, and the like, it is potentially there for you when the unthinkable happens and your house is completely destroyed.

Dozens of questions arise whenever a catastrophic circumstance occurs; however, there is one question you should ask yourself prior to such a situation: how will my homeowner insurance policy respond to the loss of my home?

Traditional homeowner policies have specific limits of insurance for the dwelling, detached structures located on the residence premises, and for contents. Once those limits of insurance are exhausted, additional payments cannot be made for property covered under the exhausted limit. However, several coverage enhancements have entered the marketplace over the years and homeowners now have additional options to guard them against the worst-case scenario of not having enough insurance coverage to adequately rebuild or replace their home.

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