How These 5 Factors Affect Homeowners Insurance Policy

Home insurance is a financial safety net that can protect your home from the risk of loss or damage. It also offers liability protection to cover damages if someone is injured on your property.

You can get home insurance for a wide range of homes and properties. Your chosen policy will depend on your property, age, location and other factors.


The building/structure of a home is an integral part of a homeowner’s insurance policy. Whether you’re looking for an apartment, house, condominium or multi-family unit, it’s vital to know how much coverage you need to protect your property and belongings in the event of fire, theft, vandalism or other unexpected events.

The Merriam-Webster dictionary defines a building as an enclosed structure with a roof and walls that stand more or less permanently in one place. These structures have served many societal needs, from sheltering humans from weather to providing living space, security, privacy and storage. The most cost-effective way to protect your home from the perils of nature and a broken or damaged home is with an effective homeowners insurance policy. The right coverage can be a lifesaver in the event of a significant loss and can help you get back on your feet.

Personal Belongings

The best way to determine the right amount of home insurance Fredericksburg VA is by thoroughly inventorying your belongings. You’ll need to tally up your expensive furniture, electronics, sporting equipment and other items of value. You list your most valuable possessions, such as your irreplaceable antiques or priceless artwork. Using this information to determine your home insurance needs will help you avoid the perils of an underinsured or overinsured property claim. Remember that your claims are subject to the terms and conditions of your insurance policy. It is a complex matter that should be discussed with your agent in a face-to-face meeting. The right insurance policy can give you peace of mind knowing that your family is safe and sound.

Additional Structures

Home insurance covers your house and the belongings inside but also protects structures on your property that aren’t attached to your dwelling. Those may include a shed, detached garage, fence or tree house.

This portion of your homeowner’s policy, known as other structures coverage (or Coverage B), protects these items against the same perils as your primary dwelling, including fire and theft.

Other structures coverage is typically included at 10% of your dwelling limit – usually around $20,000. If you have more than one detached building or garage on your property, you should talk with your agent about increasing your other structures’ coverage.


Liability coverage is an essential part of your homeowner’s insurance policy. It protects you against lawsuits for bodily injury and property damage you cause to others, up to your policy limits.

It pays for court costs, legal fees and damages awarded in such cases. It also covers any medical expenses incurred by people injured on your property or by someone who comes to your home as a guest under the contents portion of your policy.

Most standard homeowners policies offer liability limits of $100,000 to $500,000. Higher limits are available but are typically not recommended because they can expose you to significant financial loss.

Additional Living Expenses

You could relocate temporarily if a covered peril—fire, water, or another—damages your house. Many homeowners and renters’ insurance policies provide loss-of-use coverage to cover expenses.

Suppose you have a policy that includes additional living expense (ALE) coverage. In that case, your insurer will reimburse you for the cost of temporary housing up to a specified limit, usually 20 or 30 percent of your policy’s building or personal property coverage.

Often, the insurer will pay for comparable hotel accommodations similar to your lifestyle. It also will help you find a rental house or apartment that meets your needs.

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