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