Q. If my house burns down, will my insurance company pay to have it rebuilt?
A. The typical homeowners policy covers damage due to wind, fire and lightning. So if your home has been completely destroyed by a fire or if the roof has been burned, your insurance company will pay to have your home rebuilt or the roof replaced. It will also pay if flames and smoke have damaged any other part of your home.
Q. I know my homeowners policy covers my house. Does it cover the contents of my home and my garage?
A. Yes. In addition to paying for damage to the dwelling, homeowners policies cover other structures on the premises, such as a garage or tool shed, as well as damage to your furniture, clothes, appliances and other personal possessions up to the limits of your policy.
Q. My home has been so severely damaged that it is no longer fit to live in. We can live with friends for a week or two, but after that, I don't know where we'll live. How am I going to pay for all these extra expenses?
A. Your homeowners insurance policy will pay the extra expense of living elsewhere -- reasonable costs to maintain your household -- until your home has been repaired or rebuilt. That would include the cost staying in a hotel for a while, and even clothing. Be sure to keep your receipts.
Q. Most of my personal possessions are ruined. Is there a limit on how much my insurance company will pay for my clothes, furniture and appliances?
A. The contents of your home--your personal possessions--are covered up to the limit set out in the policy, often 50 percent or 75 percent of the amount of coverage you have on your home, depending on the type of policy.