The aim of Homeowners insurance is to protect you from financial losses that may result from damage to your house, your property or your personal belongings. It also protects you from liability if you are legally responsible for causing injury to others or damage to their property. Additionally, you can purchase separate insurance policies for theft, liability and other threats, but packaged plans that combine these coverages are available.

Basic Homeowners Insurance Coverage

Medical Payment Coverage - Protect you from injuries you may have caused to another individual or injuries that occurred on your property. This kind of coverage will cover medical payments for the injured up to the limit of the coverage you purchased. This insurance is effective at protecting you and your family because it pays for the medical costs no matter who was at fault. However, this form of homeowners insurance does not apply to injuries you or your family members living with you may suffer while on your property.

Liability Coverage - This type of insurance can pay for the bodily injuries to another person or the property damage for which you (or other who live in your household) are legally responsible. It can also (in some cases) pay for a lawyer to defend you if the issue should escalate into a lawsuit.

Property Coverage - Property coverage will pay for physical damage to your home, personal property, and detached buildings on your property such as garages and tool sheds. Property coverage is the most complex part of your policy, and generally includes coverage for:

• Covered Perils - Uncommon events like fires, windstorms and theft that result in sudden and often expensive damage to your home or property. With proper coverage, your personal property will be covered anywhere in the world. Note: some policies limit how much you can recover from damages, so be sure you speak with an expert before you make any insurance purchases.
• Additional Living Expenses - If you are forced to move out of your home temporarily, your additional living costs will be covered. For example, it might cover a portion of your motel and restaurant expenses if your house of apartment is destroyed in a fire.