| Homeowners insurance can be confusing, to say the | | | | of your home structure coverage. To determine if this |
| least. Here's a quick rundown on what homeowners | | | | is enough, take an inventory and total up the value of |
| insurance covers in simple terms. | | | | everything you own. |
| What Does Homeowners Insurance Cover? | | | | What is additional living expenses coverage? |
| Homeowner insurance covers the following: | | | | Additional living expenses coverage pays your |
| 1. The structure of your home and other structures on | | | | expenses when your home has been damaged by |
| your land | | | | fire, vandalism, plumbing leaks, or storms, and you need |
| 2. Your personal property - furniture, clothing, | | | | to live elsewhere. It covers your hotel and restaurant |
| electronics, appliances, etc | | | | bills plus other living expenses. |
| 3. Your additional living expenses when your home is | | | | Standard policies provide additional living expense |
| damaged and you need to live elsewhere | | | | coverage equal to 20% to 25% of your home |
| 3. You, when someone is hurt and you're found to be | | | | structure coverage. |
| at fault | | | | What is personal liability coverage? |
| What is home structure coverage? | | | | Personal liability coverage protects you from lawsuits |
| Home structure coverage pays to rebuild or repair | | | | when you, your family, or your pets injure someone or |
| your home after it's been destroyed or damaged by | | | | damage their property. It pays for the other person's |
| vandalism, fire, plumbing leaks, or storms. The amount | | | | medical expenses and property damage expenses, |
| of home structure coverage you need should be | | | | plus your court costs and legal fees. |
| enough to rebuild your home. | | | | Standard policies provide a minimum of $100,000 worth |
| To figure out how much coverage you need, call a | | | | of coverage, but if you have a lot of assets to protect |
| local real estate agent or builder to find out the | | | | you can purchase additional coverage. |
| square-foot building costs in your area. Then multiply | | | | Where can I get cheap homeowners insurance? |
| that figure by the square footage of your home. | | | | The easiest way to get cheap homeowners insurance |
| What is personal property coverage? | | | | is to comparison shop online, and the best way to do |
| Personal property coverage pays to replace your | | | | that is to visit an insurance comparison website where |
| personal possessions after they've been stolen, or | | | | you can get rate quotes from a number of insurance |
| damaged by fire, vandalism, plumbing leaks, or storms. | | | | companies all in one place. Some of these sites even |
| The amount of coverage you need should be enough | | | | let you talk with insurance experts who can answer all |
| to replace all your personal property. Standard policies | | | | your questions and give you money-saving advice. |
| provide coverage equal to 50% to 70% of the amount | | | | (see link below). |