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