What are some basic homeowners insurance coverage options?

Homeowners insurance coverage options

There are a few basic homeowners insurance coverage options that most homeowners will need, and a few other specialized options that only some homeowners will need.

Basic homeowners insurance policies provide protection for property and possessions against a standard set of events or disasters, including things like fire; hail; riots or civil commotion; damages caused by aircraft or vehicles; theft; volcanic eruption; falling objects; or weight of ice, sleet, or snow.

If one of these or another covered event occurs, homeowners insurance will provide pay the homeowner for losses. The property insurance component pays to repair or rebuild a damaged home; to repair or replace damaged or lost personal possessions, whether they were in the home or were damaged by one of these events anywhere in the world; and for living expenses if the home is unlivable because of one of these events.

Basic homeowners insurance may not cover the full cost of some expensive items inside a home, like jewelry, fine art, furs, or other precious items, and homeowners can buy special insurance coverage for those items.

The liability insurance component protects homeowners against lawsuits that can result from injuries or property damage caused to others by the homeowners, or their pets or children; and pays for the cost of defending a homeowner in court and any awards paid to the other party. It also pays for medical expenses if someone is injured in the homeowner’s home, which is a way to avoid having a liability lawsuit filed against the homeowner.

For each of these types of homeowners insurance coverage – property, possessions, liability, living expenses – damage caused by events such as war, nuclear accidents, floods, and earthquakes are specifically excluded.