Homeowners insurance is an insurance policy that protects you financially in the event that your home and property are damaged in a covered peril, or in the event of a covered lawsuit.
Perils that are typically covered by a standard home insurance policy include fire, wind, lightning, hail and theft. While no one plans on losing their home or possessions to any of these perils, it unfortunately happens every day. Ask yourself this: If your home was ever destroyed in a fire, for example, how would you pay to rebuild your home? That's where your homeowners insurance comes in.
Homeowners insurance protects the investment you have made in your home by providing you with coverage for specific hazards.
But your home insurance doesn't stop there. In the event that someone was filing a lawsuit against you for accidental damage you caused to their property, how would you pay for the costly legal fees? Standard homeowners insurance also contains liability coverage that protects you and your family against lawsuits where another party finds you liable for damage to their property or person.
Typically, a standard home insurance policy includes the following coverage:
Standard Home Insurance Coverages
Coverage A – Dwelling
Coverage B – Other Structures on Your Property
Coverage C – Personal Property/Contents
Coverage D – Loss of Use
Coverage E – Personal Liability Protection
Coverage F – Medical Payments