What is Homeowner’s Insurance?
A homeowner’s insurance policy can protect your home against damages that occur to the house itself and the belongings inside. Homeowners coverage can also protect your property, some of your personal possessions, and you. It’s a package policy that combines two types of coverage:
- Coverage against your property being destroyed or damaged by certain events (i.e. fire, theft and windstorm)
- Coverage for liability exposure occurring in/around your home (i.e. someone being injured on your property)
For example, if something unexpected occurs (such as fire or burglary), homeowner’s insurance will help pay for destruction and losses.
In addition, a home insurance policy may provide liability coverage for accidents that occur on your property (including both property damage and bodily injuries incurred by visiting guests), and may even cover certain accidents that occur off your property.
There are several different coverage types built into a home insurance policy and it’s important to know what coverage types apply to what damages.