What It Is & Who It’s For

Homeowners insurance is a policy that provides coverage for your home and your personal belongings while also providing you with liability coverage in case someone who is injured sues you on your property or is in need of medical care.

How it Works

In exchange for a premium, which may be paid annually, quarterly or monthly, the insurance company provides coverage on your home and belongings in the case of loss from fire, storms, vandalism, or any covered peril. The amount of your premiums are based mostly on the value of your home or the amount it would cost to replace. Home insurance policies generally have a deductible, which is the amount you must pay per occurrence before the insurance company pays their share.

Types of Coverages

When you purchase a homeowner’s insurance policy, you have the choice of the type of coverage you want and the amount of coverage. These may include the following.

• Coverage on dwelling – This pays for damages that happen to your dwelling and any attached structures such as a garage or walkway.

• Additional buildings – This will any damages to other unattached buildings.

• Personal property – This coverage is for anything you own in the home or on the property.

• Additional living expense – If you have to live elsewhere while your home is being repaired or replaced, this coverage will pay for your living expenses.

• Liability – This covers you and your family against legal claims if someone else is injured on your property.

• Medical liability – This provided coverage for medical bills for others that were hurt on your property even if it was their fault.

Benefits of Homeowner’s Insurance

There are almost too many benefits to having homeowners insurance to mention. The largest benefit is that a home is a large investment, typically not an investment you could make in the case of an emergency. Homeowner’s insurance ensures that your home is covered in the case of an emergency.