What are the basic types of protections for homeowners?

Basic coverage for homeowners

Basic homeowners insurance policies provide protection for property and possessions against a standard set of events or disasters.

Most cover the following: fire; lightning; windstorms; hail; explosions; riots or civil commotion; damages caused by aircraft or vehicles; smoke; vandalism; theft; volcanic eruption; falling objects; weight of ice, sleet, or snow; bursting or overflow of water or steam from, tearing apart or burning of, or freezing of plumbing, heating, air conditioning, fire sprinklers, or household appliances; or sudden damage from artificially generated electrical current.

If one of these events occurs, homeowners insurance will provide four types of protection. The insurance company will pay to repair or rebuild the home if it is damaged. The insurance will pay 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.

The insurance will pay for living expenses if the home is unlivable because of one of these events. The insurance will also pay if one of these events is caused by the homeowner and injures another or damages another’s property.

For each of the four 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.