What is Homeowners Insurance?

Homeowner's insurance is a type of insurance that provides financial protection for your home and belongings in case of disasters. Most homeowner's insurance policies cover disasters such as theft, fire, smoke, lightening, frozen pipes, hail, ice and snow. Acts of war, nuclear accidents, earthquakes, floods, poor maintenance by the homeowner and acts of terrorism are typically not covered by a standard homeowner's insurance policy.

Each homeowner's insurance policy is different, so you should be sure to read your own policy carefully to see what is and isn't covered.

Most policies cover the structure of the home, which includes the cost for repairs or replacement of the structure of your home if it is damaged or destroyed by any of the disasters that are covered by your policy. Along with the home, most homeowner's insurance policies cover outbuildings such as garages or sheds as well.

Along with the structure of your home, homeowner's insurance policies typically cover the items that you keep inside your home. That means that if your things are stolen or damaged by any of the disasters covered by your policy you can be reimbursed for their loss. Any high ticket items that you own may need additional coverage above and beyond what is provided by a typical homeowner's insurance policy depending upon their value.

Most homeowner's insurance policies also provide liability insurance for you, your family and even your pets. Typically, this coverage provides medical payments to third parties and helps to cover legal costs if a lawsuit is brought against you. Often, you can also be reimbursed for rent that you would have collected if you rent out part of your home but it cannot be lived in because of damage caused by one of the covered disasters.

If you are temporarily unable to occupy your home after a disaster, many policies will provide you with money to cover your living expenses. This usually includes items like hotel costs, meals at restaurants and any other vital living expenses.