Homeowners insurance protects your home, your guests and you. Homeowners Insurance policies usually cover you in case of damage to your home or property, injury to your guests, or accidents for which you may be held liable, such as injuring another person or damaging their property. Homeowners insurance also covers your personal property, such as furniture, clothing, appliances, and other things you keep inside your home. Most Homeowners policies offer special, higher coverage limits for valuables like art, jewelry, or collectibles.
Homeowners insurance policies do not generally cover damage caused by earthquake or flood, so you should consider purchasing a separate policy for these risks if you live in an affected area.
A standard homeowners insurance policy protects your home and other structures on your property; such as a garage or tool shed, against loss from many things, including, but not limited to:
- Fire or lightning
- Windstorm or hail
- Vandalism or theft
- Weight of ice, snow, or sleet
- Accidental discharge or overflow of water or steam from within a plumbing, heating, air conditioning, or automatic fire-protective sprinkler system, or from a household appliance
- Freezing of a plumbing, heating, air conditioning, or automatic fire-protective sprinkler system, subject to certain conditions and restrictions
- Accidental injury to someone or damage to their property while they are on your property
- Personal possessions like art and jewelry, subject to certain limitations
Please note that this is a summary of typical coverages. Read the terms of your policy carefully to learn what coverages are provided under your insurance policy.
Buying Homeowners Insurance
Homeowners insurance is different from other types of insurance because the insurance company tells you how much coverage you need on your dwelling. Each company has a formula for determining this. If you have your current policy handy, the insurance company can match other policy features, like the coverage amount for your personal property.