The Basics of Homeowner's Insurance

Homeowners insurance is an insurance policy you need to get when you purchase a home. When there is an accident or an incident which creates larger financial costs to recover from, homeowners insurance is used to cover those costs. There are polices which act as umbrella coverage polices, but normal homeowners insurance is broken down into individual groups or units most often. So, what is homeowners insurance? What types of polices are there and what do they cover? Here's a basic look at these questions.

The general description of homeowners insurance is a policy that covers loss or damage to structures, personal property, the use of your property or your liability when someone else is injured within the property limits. There are four types of policy which are used to cover every type of homeowners policy; structural, property, liability, and loss of use. Let's take a look at each.

Structural Damage

This type of homeowners insurance policy is used to cover not only your home, but other structures on your property such as sheds, garages, barns, or other freestanding buildings. Coverage under this policy can include, but usually isn't limited to; natural disasters such as severe weather, lightning; vandalism or theft; fire or explosions; falling objects such as trees or aircraft; and collapses such as when a roof caves in.

Property Damage

Policies covering property damage work in the same manner as coverage for structural damages. This homeowners insurance covers what you own while it is on your property. This includes any furnishings, tools, belongings, clothing, plants, or other items which cannot be moved off of the property under their own power like a motorized vehicle would. For an item to be covered under this insurance it must be listed and categorized in a home inventory. This list must include serial numbers, brands, pictures, the approximate age and purchase value if any.

Loss of Use Coverage

This homeowners insurance policy is what covers temporary living expenses when you are forced to live away from your property. Costs covered under this would include meals, hotel rooms, storage, and sometimes pet kennels. You will most have a set time limit for how long this coverage will work when used. And while it isn't the first item on the list, it does take up 1/5 th of the total allowance of the insurance for your property.

Liability Coverage

Liability polices under homeowners insurance are what covers you against legal and medical bills if your found liable for damage or injuries to others while they are on your property. If someone falls in your driveway, and you are found at fault, this is the coverage which pays them. The two most often claimed cases found in this group are structural failure and "slip and fall" cases.

You can usually get each type of policy in a combined homeowners policy, or you can get each individual policy. It doesn't matter how much you own, or how extensive your property is; homeowners insurance will cover it.

You can get homeowners insurance policies from most insurance providers. Check with a nearby agent and make sure you get quotes from different companies. The cost per coverage will vary with the amount they are willing to cover. Make sure you have a full detail of what you own and what is on your property as well as the possible value. The agent may need to view the property before writing the policy.