Reports about people’s net worth is somewhat confusing. A person worth a significant sum of money may not have any liquidity at all. Net worth is often derived by property ownership. So, a homeowner in Pennsylvania will do what is necessary to protect the equity in his or her house. Homeowners insurance protects the investment, but the coverage has its limitations.
In general, a homeowner’s insurance policy covers the dwelling and any structure connected to the property, such as a garage. If, however, the structure is used primarily for business, a homeowner’s policy may not cover it.
Personal property is usually covered by the policy, but read the limitations. High-value items may have limits, so a rider may be necessary.
Understanding the exclusions
Personal liability, generally in the $300,000 to $500,000 range, comes with homeowners insurance. The coverage protects the homeowner against negligence, such as slip-and-fall accidents, or other incidents where injury derives from negligence.
Reading the exclusions in a homeowner’s insurance policy is a must. Unfortunately, many homeowners don’t read their full policy contract and become unaware of the exclusions. A contract could note that infectious diseases, damage related to mold, liabilities derived from demolition, or even frozen pipes receive exclusions. Each policy may be different, so it becomes essential to review the policy to determine what isn’t covered.
Individuals who purchase a homeowner’s insurance policy need to review all the items associated with coverage. Some policies exclude floods and even bite incidents related to specific breeds of “dangerous” dogs?
Anyone who does suffer an injury at someone’s property could speak with a personal injury attorney about the situation. An attorney could represent the injured party in a suit against the homeowner. An attorney might also negotiate a settlement with the insurance company. Hopefully, any procured funds will cover the injured person’s medical expenses.
