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Homeowner's Insurance 101

The Basics of Home Insurance Coverage

Homeowner's insurance is an expensive purchase, which makes it very important for consumers to make a well-informed decision on their policy coverage.

Not only does homeowner's insurance protect a consumer in cases of perils such as fire, windstorm, and theft but it also protects consumers in cases of lawsuits resulting in owner negligence, and additional living expenses.

Also keep in mind most home insurance policies do not cover motorized vehicles unless they are unlicensed and used only at your home. Your insurance agent or company can help you find appropriate coverage for your car, boat, snowmobile or other recreational equipment.

Property damage coverage helps to pay for damage to a consumer's home and personal property in addition to structures such as a detached garage and tool sheds. Personal property within your home is also covered, however, some forms of personal property have limited coverage. Items such as silverware, computers, guns, money, expensive antiques and jewelry, may require additional insurance. More information about scheduled personal property endorsement.

Consumer home insurance also includes personal liability coverage that protects you against claim or lawsuit resulting from bodily injury or property damage to others caused by your negligence. Take for example your dog bites someone, a guest falls down your stairs, or your son/daughter throws a ball through a neighbor's window, you are legally responsible for these actions. Personal liability coverage helps to cover the cost associated with these damages. Your home insurance will assist in paying the medical expenses for persons accidentally injured on your property by a family member or pet. However, please note that medical payments do not apply to your injuries of your or family members living with you or activities involving a home business. There are additional exclusions to consumer personal liability coverage.

Most homeowner's insurance policies also cover additional living expenses if your home is damaged by an insured event but results in you being unable to live there while repairs are being made. These expenses include limited motel, restaurant, and warehouse storage.

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