Your homeowners policy pays to repair or rebuild your home if it is damaged or destroyed by fire, hurricane, hail, lightning or other disasters listed in your policy. ... A standard policy will not pay for damage caused by a flood, earthquake or routine wear and tear.
Homeowners insurance policies generally cover destruction and damage to a residence's interior and exterior, the loss or theft of possessions, and personal liability for harm to others. Three basic levels of coverage exist: actual cash value, replacement cost, and extended replacement cost/value.
Termites and insect damage, bird or rodent damage, rust, rot, mold, and general wear and tear are not covered. Damage caused by smog or smoke from industrial or agricultural operations is also not covered. If something is poorly made or has a hidden defect, this is generally excluded and won't be covered.
The levels of coverage you need for these six different areas are what your insurance company will base your premium calculations on.
Homeowners insurance covers the basic structure of your home, including its foundation, frame, walls, and the roof over your head. In the event your house sustains damage and the cause of loss is covered, your insurer will help chip in for repairs.
The 80% rule means that an insurer will only fully cover the cost of damage to a house if the owner has purchased insurance coverage equal to at least 80% of the house's total replacement value.
A standard policy includes four key types of coverage: dwelling, other structures, personal property and liability. If your home is damaged by a covered event, like strong winds, dwelling coverage can help pay to repair it.
Health insurance typically covers most doctor and hospital visits, prescription drugs, wellness care, and medical devices. Most health insurance will not cover elective or cosmetic procedures, beauty treatments, off-label drug use, or brand-new technologies.
The auto insurer has fulfilled their obligation by making payment on a valid claim, so as long as your policy and state allow it, you can keep the money to use as you choose.
The takeaway:
After a claim, you can keep the leftover money, as long as you didn't lie and inflate the cost of repairs. The insurance company doesn't always pay the homeowner directly after a claim. You may receive several checks following one claim if there are multiple losses, and depending on the policy type.
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