A homeowners insurance policy will insure against damage to your home and personal property from a multitude of events such as fire, lightning, burglary, vandalism, storms, explosions and more. Its basic purpose is to restore such items to the condition they were in before a loss occurred. In addition, all homeowner policies contain personal liability coverage providing protection when you are held legally responsible for bodily injury or property damage to others.

There are essentially six basic coverages included in a homeowners policy.

1. Dwelling coverage – This covers your home and any structures attached to it.
2. Other structures coverage – Structures which are set apart from your home, but are located on your property –  for example a detached garage, dock, or shed.
3. Personal property coverage – Provides coverage for personal property you own.
4. Loss of use – Pays for living expenses when you cannot live in your home due to a covered loss.
5. Liability coverage – Pays for your legal defense against a liability claim and covers court judgments against you up to the policy limits.
6. Medical Payments – Includes emergency medical bills for anyone injured on your property or any injury caused by a member of your family or a pet, regardless of where the incident occurs.

In addition to these six basic coverage types, every homeowner should evaluate whether flood insurance is appropriate for their situation.

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