If you have suffered damage to your home, or perhaps someone has been injured on your property, you may wonder what your basic coverage’s are under your homeowners’ policy of insurance.
A typical homeowners’ policy in New Jersey will address coverage in four specific areas:
- Property damage
- Personal liability
- Medical payments
- Additional living expenses
Coverage for Property Damage
Your homeowners’ policy will customarily provide coverage for damage to or loss of your home, as well as household furnishings, clothing and other personal property. As a general rule, the coverage for loss of your dwelling is limited to 50% of its fair market value, but you can purchase additional coverage for an additional premium. The policy protects all structures on your property, including outbuildings, a detached garage or a tool shed. The policy may even cover items that are damaged or lost outside of your property. For example, if you take jewelry in for cleaning or repair and it is stolen, you may be able to file a claim on your homeowners’ policy. The same can be true for personal property stolen from your car.
Personal Liability Coverage
This component of your coverage pays for damage or injury caused by you, family members or even pets, but is typically limited to non-motor vehicle accidents. It will likely cover the costs of defending any lawsuit for personal injury. This provision usually has no deductible, but generally has a limit of liability of $100,000 or less, unless you purchase more.
This feature of your policy only applies to medical expenses incurred by someone outside of your family who is injured on your property. There may also be some coverage if you are involved in a non-auto-related accident away from your home.
Additional Living Expenses
This covers the costs of having to live somewhere else because of damage to your home.
At RAM Law, we provide a free initial consultation to all personal injury clients. To set up a private meeting, contact us by e-mail or call our offices, in New Brunswick at 732-247-3600 or in Somerville at 908-448-2560.