It’s a package deal
Homeowners insurance typically comes as a package policy. That means you get coverage that extends from property damage to your buildings, to liability for injuries caused to others by policyholders.
The four main parts of your policy usually include these types of coverage:
This coverage protects your home, and possibly other unattached structures on your property. Should your home suffer damage caused by smoke, vehicles, lightening, or vandalism, your policy would cover the cost of repair. Keep in mind that there are some perils that may not be covered, such as flooding, earthquakes, and normal wear and tear.
If a thief breaks in and takes your electronics and sports equipment, your homeowners policy would cover the cost of your loss. This also extends to fire, smoke, and other disasters listed in your policy. But if you have extra valuable items, such as your vintage electric guitar, or your grandfather’s antique coin collection, you will want to be sure to purchase an extra floater or personal property endorsement. It is always wise to have those special items appraised to find their actual value.
Should you, one of your immediate family members, or even your dog cause bodily injury to someone else, your policy would cover the medical bills incurred. Liability should also cover the cost of damage you or a family member causes to someone else’s property, up to the limit of your policy.
Home Away From Home Expenses
If you should become homeless for a time, thanks to one of the disasters mentioned above, this part of your policy would cover the cost of a motel during your home renovation.