Five Types of Illinois home insurance

Home Insurance:

Home insurance is a bill you pay monthly in order to protect your home and property if it were to be damaged.  When you pay an insurer each month, you are entering into an agreement with that insurer where they promise to pay for damage to your property, your home, and even in some cases if someone is injured on your property – provided the claim is legitimate.

Besides the obvious reason that it is wise to protect such a large investment, you need Illinois home insurance from because without it, you often cannot apply for a mortgage.  Mortgages require the guarantee that you are insuring your home before they will agree to lend any money to an applicant.

Types of Illinois home insurance

It is important to be aware of the vocabulary that insurers use in order to identify what circumstances and property are and are not covered in a plan.

  • Loss of use:

Loss of use means that your insurer will pay for your living expenses if you are forced off of your property or out of your house due to damage.

  • Dwelling:

If an insurer states that they will pay for your ‘dwelling’, they are referring to damage that happens in your house, and to any structures that are attached to your house (a wrap-around porch would qualify, for example).  This would include damage to fixtures and wiring, plumbing, heating, or air conditioning systems, so long as they are installed in the house.

  • Other structures

Damage to ‘other’ structures means damage that occurs to structures that are on your property but not a part of your house, such as fences or free-standing garages.

  • Personal property:

If an insurer states that your personal property is covered, they mean that they will reimburse you for the cost of your possessions.  This includes things like the furnishings of your house and your appliances.  This even applies when these items are not on your property when they are damaged.

  • Personal liability:

Personal liability covers incidences in which someone is hurt on your property and you are sued and found liable for their injury, while medical payments can cover the bills for people who are injured on your property or hurt by a pet.

It is important to remember that, even when your insurer states that they will pay for all of these damages, they typically only pay a certain percentage of the damages, or damages up to a certain flat fee.

Finally, if you cannot acquire insurance, the state of Illinois has the FAIR Plan, a non-profit organization set up for those who, for whatever reason, cannot acquire homeowners insurance on their own.  If you are struggling to pay for insurance, consider visiting their site.