In insurance terms, schedule refers to the items that are covered or excluded in your homeowner's insurance policy. Today, very few homeowners are actually aware of what their insurance policy means to them. And due to this, they are unable to make the best use of their policies. Hence, before buying your homeowner's insurance policy, you need to know what all things it covers.
A brief idea on homeowner's insurance: The main objective of a homeowner's insurance is to protect your home against any kind of mishaps. Majority of the insurance policies provide coverage for both the structural building of your home as well as the contents present inside. A standard homeowner's insurance policy comprises two parts namely, property protection and liability protection.
Property protection: This insurance coverage covers following four specific topics:
1. Personal property: This will include all the contents present in your home and personal items owned by your or any of your family members living in the home with you.
2. Your dwelling: This includes all attached structures, appliances, cooling systems, plumbing, wiring and heating.
3. Additional structures: This covers detached structures, including garages, walls, driveways, patios, fences, sheds and sidewalks.
4. Loss of use: This compensates for all living expenses beyond your usual expenses in case you're forced to stay away from your home due to repair work or some other reason. Such situation can arise if your dwelling is completely damaged in an unforeseen event/peril (covered in homeowner's insurance policy) and not suitable for living until repaired.
Liability Protection: This section can be classified into two parts as follows:
1. Personal Liability: This covers property damage or bodily injury sustained by any person either as a result of your actions or on your property. This doesn't include business or auto related incidents.
2. Medical Payments: This compensates for the cost incurred in medical expenses for guests, who may be accidentally hurt while on your property. It doesn't cover damage to cars or injury to animals. Now that you know what all things a regular homeowner's policy covers, it's time you get to know what all things it doesn't cover. Following are 6 essential facts you need to know about your homeowner's insurance policy: It doesn't cover damage caused due to natural calamities, such as earthquake or flood. It doesn't cover termite damage, mould damage or sewer backups. The items that are damaged can't be replaced at their purchase price.
To protect your property against natural calamities or to include termite damage or mould damage in your insurance policy, you can buy additional limited optional coverage. It is recommended that before purchasing your homeowner's policy, you should carefully go through the schedule.