What coverage do I get from a homeowners policy?
Homeowners insurance includes a broad package of both property and liability coverage, many of which cover activities away from and not in any way connected with your home. Homeowner's insurance pays for the repair or rebuilding of a house which is damaged by fire or numerous other causes, such as wind damage, freezing and vandalism, just to name a few. However, earthquake and flood, among other things, are not covered unless specifically provided and paid for. This type of policy also pays for replacement of the personal items inside your home if they are damaged by the same causes that damage the house or if they are stolen.
A Homeowner's policy also covers your legal liability which could arise if someone is injured on your property and also for certain types of actions which occur away from your property that could result in your being legally liable for damages. (Homeowner's insurance will not cover liability that is normally covered by other types of policies, such as auto, professional liability or business insurance.) Your Homeowner's liability insurance pays the damage for which you become liable, up to the dollar amount of liability coverage that you purchased. Without this type of liability insurance, all of your personal assets could be at risk if you are sued and found to be responsible for causing injury to someone or damage to another person's property.