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Understand the Basic Homeowners Insurance Coverages

Understanding the basic homeowners insurance coverages offered by Norm Foster Insurance in Lakeville MN

1. Building Structure Coverage: The most common loss event insured against is fire. However, a homeowners policy will also cover other damages, such as damage caused by wind or hail. Be sure to determine what is and isn’t covered. Most policies do not cover losses from certain natural disasters, such as floods, earthquakes, or other earth movement.

2. Liability Coverage: Pays for bodily injury or property damage to others, if you are liable, resulting from use of your home, unintentional acts committed by you, and acts of your pets. Costs to defend lawsuits are included.

3. Personal Property /Contents Coverage: Covers personal property that is damaged or destroyed as a result of a covered loss. Settlement terms for personal property can be on a Replacement Cost or Actual Cash Value basis, depending on the policy you select.

4. Loss of Use Coverage: Reimburses for additional living expenses you incur if your home is unfit to live in due to a covered loss.

NOTE: All homeowners policies do not necessarily insure the same types of damage or causes of loss or damage. It’s important to understand how your policy covers losses for Building Structure and Personal Property/Contents coverage. Two typical ways a policy may handle causes of damage are:

a.   Named Peril: Property is only insured for damage caused by specific named perils.

b.   Accidental, Direct Physical Loss or Damage: Property is insured for damage caused by all causes and types of loss or damage, subject to certain exclusions contained in this policy.
If you have any questions regarding the content of this article or any other insurance related need, please contact Norm today at 952-929-8922, or at

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Norm Foster Insurance
Norm Foster, LUTCF • Agent
16372 Kenrick Ave, Suite 130
Lakeville, MN 55044
Phone: (952) 929-8922
Fax: (952) 223-2233