What does homeowners insurance cover?

A standard homeowners insurance policy insures your home and the things kept inside of it.  It also protects you from financial loss due to disasters.  There are a few components to a basic home insurance policy.

1. Dwelling Protection

The insurance company will pay up to this limit to repair damages done to your home.  This amount should be equal to what it would cost you to rebuild your home.

2. Personal Property

This coverage insures your personal property, that means your television, computer, stereo, laundry machine, clothes, furniture, electronics, etc..  Many homeowners insurance policies also provide protection to your property while it is away from the home.

3. Liability Protection

Your homeowners policy provides protection against lawsuits for bodily injury or property damage that you or a family member cause to others.  Your pets are also covered under this portion of the insurance so if your dog bites someone this will pay for court costs and any judgements you are oredered to pay up to the policy limits.

4. Living Expenses

If your home is unihabitable due to a covered loss than your homeowners insurance will cover living expenses while your home is repaired.  These expenses may include restaurant and grocery bills, hotel bills and any other living expenses incurred.  The amount of coverage differs from company to company so speak with your agent to find out just what your policy covers.

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