Insurance

The most obvious coverage offered by a homeowner's policy is damage to the building

and its contents. If you were to have an accidental fire, for instance, your homeowner's

policy would cover the cost of rebuilding your home and replacing its contents. Fires,

tornadoes, wind damage, and lightning damage are common types of disasters that are

covered by most policies.

Homeowner's insurance also covers damage to people on your property. For example, if

you were having a garage sale at your home and someone were to break his leg at your

sale, your homeowner's insurance policy would cover the medical treatment to that

individual if you were legally liable for the injury. If you have pets at home, any injuries they

cause by biting or attacking someone would be covered under homeowner's insurance.

There are some types of disasters that most homeowner's insurance policies do not

cover. Flood damage, earthquake damage, and damage due to improper maintenance of

the property are almost never covered under a homeowner's policy. However, if you live in

a flood plane or place where earthquakes are common, you can, and should, purchase and

additional coverage option to protect you from these disasters.

Additionally, if you have a particularly valuable item in your home that you want to make

sure is covered adequately, you may need to buy additional coverage for this item. For

instance, if you have a painting that has been in your family for several generations, you

will likely want to purchase such a policy. While the painting would be covered in your

regular policy, the additional policy will ensure that you are paid what the painting is truly

worth, as it can be difficult to determine value of these types of items after a disaster has

occurred.