Homeowners insurance provides financial protection in case of damage to your
property, and covers your liability for injuries and property
damage you or family members may cause to others. The
homeowners insurance policy covers damage to your home caused by most disasters,
except for a flood, or an earthquake, which would require
separate insurance policies.
Structural Coverage -
If your home is damaged or destroyed by fire, or other disaster
listed in your policy, the insurance company pays to repair or
rebuild your home. Property structures that are detached, such
as a garage, are usually covered as well. Your homeowners
insurance policy should provide enough money to rebuild your
home if necessary.
Liability Coverage -
If someone is injured on your property, the liability part of your policy pays for
their medical expenses, the cost of
defending you in court, and any court awards, up to the
insurance policy limit. The policy should provide no
fault medical coverage, without a liability claim.
Personal Items -
Your personal belongings, such as, furniture and clothes, are covered
by your homeowners insurance, if they are destroyed by fire, or other insured
disaster, or if they are stolen. There is a percentage or
dollar limit to replace these items, as specified in your policy.
Trees, plants and shrubs should also be covered under the standard
Living Expenses - Your
homeowners insurance should pay the costs of living away from home, if you
can't live there because of damage from an insured disaster,
which includes hotel rooms, restaurant meals, and
other living expenses.