Home Insurance 101

Homeowners insurance is an insurance policy that covers eligible catastrophic losses that occur in your home. It is not a policy meant to cover everyday occurrences, but is more for events like a fire or theft where you incur a substantial financial loss.

A standard homeowners insurance policy provides four primary coverages for homeowners:

Dwelling coverage – Homeowners insurance offers financial protection if you your home needs to be rebuilt or repaired due to a eligible cause of loss.

Contents coverage – Homeowners insurance will also provide coverage for many of the items in your home, like furniture, clothing and other personal belongings if they are damaged or stolen.

It is important to be aware of exclusions related to homeowners insurance coverage for your personal property. Oftentimes, valuable items, like jewelry, furs or collectibles, may be subject to special limits and will need additional coverage through a rider or more specific insurance policy. There may also be limits placed on items that face a loss outside your home. Be sure to speak with an agent to review any exclusions of note.

Liability – Homeowners insurance offers liability protection to you and your family members (including pets!) if you are to cause bodily injury or property damage to others. This also covers injuries your guests may incur while in your home. If you have other assets in addition to your home, it is wise to choose liability limits that will protect those assets. Speaking with an agent can help ensure you have proper coverage.

Loss of use coverage – If a loss by a covered peril were to make your home uninhabitable, this coverage would cover the costs of living away from your home, including temporary lodging, meals and other costs above your normal standard of living.