Homeowners Insurance 101, The Basics


Homeowners Insurance 101, understand the basics about home insurance now! A standard home insurance policy includes 4 main types of coverage.

Coverage #1, the structure of your home. You receive a payout to repair covered damages—like those from a fire, storm, or burst pipe. You can even make a claim for damage caused by falling objects like a tree.

Coverage #2, your personal property. Home insurance protects your personal possessions—like clothes, furniture, or jewelry—if they get stolen or damaged during a covered event, like a wind storm or roof leak.

Coverage #3, your liability. In addition to covering your home and belongings, home insurance protects you from lawsuits. Someone could get hurt on your property or bitten by your dog.

Coverage #4, your additional living expenses. Additional living expenses for a hotel stay and meals can save the day you if have to leave your home while repairs are being made. Some home insurance policies put a cap on the amount of coverage you can get. For instance, there may be a dollar limit on items like cash, jewelry, silverware, and firearms. So be sure to know these limits or restrictions before you need to make a claim.

Now that you know what’s covered, let’s talk about what isn’t. Flood insurance is a completely different coverage that must be purchased separately. You can learn more at floodsmart.gov.

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