Homeowners Insurance

Why Homeowners Insurance Matters

Owning a home is a major investment, and homeowners insurance helps protect that investment from unexpected events. A standard homeowners insurance policy typically covers the structure of your home, your personal belongings, and certain liability risks. Without adequate coverage, you could face significant out-of-pocket expenses to repair damage, replace belongings, or handle unexpected legal claims.

What Homeowners Insurance Covers

Homeowners insurance can help protect your home and personal property against covered losses caused by events such as:

• Fire or smoke

• Lightning strikes

• Theft or vandalism

• Explosions

• Windstorms and hail

• Damage from the weight of ice or snow

• Certain water damage caused by sudden plumbing problems

Note: Standard homeowners insurance generally does not cover floods, earthquakes, normal wear and tear, or damage caused by neglected maintenance. Separate policies or additional coverage may be available for certain risks.

Coverage for Temporary Living Expenses

If a covered disaster makes your home uninhabitable, homeowners insurance may help pay for additional living expenses while repairs are being completed. This coverage may include:

• Hotel stays or temporary housing

• Additional meal expenses

• Laundry costs

• Other necessary living expenses above your normal household costs

Coverage limits and eligibility vary by policy, but this protection can help ease the financial burden while you work toward returning home.

Liability Protection

Homeowners insurance can also provide personal liability protection if you are legally responsible for someone else's injuries or property damage. Depending on your policy, coverage may help with:

• Medical or legal expenses related to covered incidents

• Legal defense costs if you are sued

• Accidental damage you or a covered family member cause to someone else's property

• Certain injuries involving your pet, subject to policy terms and exclusions

Personal liability coverage can apply to qualifying incidents both on and off your property. Policy limits, exclusions, and conditions apply.

How Much Coverage Do You Need?

The right amount of homeowners insurance depends on your home's replacement cost, the value of your belongings, and your personal financial situation.

Consider these important factors when choosing your coverage:

• Dwelling coverage: Estimate the cost to rebuild your home at current construction prices, not simply its market value or purchase price.

• Personal property coverage: Add up the value of your furniture, electronics, clothing, appliances, and other belongings.

• Personal liability coverage: Choose limits that help protect your assets if you face a covered liability claim.

• Other structures: Consider coverage for detached garages, sheds, fences, and other eligible structures on your property.

• Deductible: Choose an amount you can reasonably afford to pay out of pocket before your insurance coverage applies.

Creating a home inventory with photos, videos, receipts, and model numbers can make the claims process easier. Reviewing your policy regularly can also help ensure your coverage keeps pace with rising construction costs and changes to your property.