Homeowners insurance will help you repair or rebuild your home if it’s damaged by fire or other covered disaster. It also provides these valuable protections:
- Contents: A well-written homeowners insurance policy pays to replace your personal possessions when damaged or lost due to fire, theft or other covered peril, whether at home or away.
- Medical payments: Your homeowners policy will pay reasonable medical costs for a non-resident who suffers injury at your home. This valuable coverage can help prevent a minor accident from turning into a liability lawsuit.
- Liability: Your homeowners insurance provides your first line of defense when someone sues you for an accident that occurs at your home or through your negligence. It helps pay your attorney and court costs; your insurer will even help arrange your legal defense.
Your homeowners insurance costs will depend on many factors, including your home’s value, location and type of construction. The higher the value and risk of damage, the more you’ll pay.
The type of homeowners coverage you select also affects costs. The basic “named perils” policy covers you only for loss or damage caused by one of the perils named in the policy (hence its name). These generally include fire or lightning, windstorm or hail, explosion, and more. A broad-form policy provides broader coverage, covering you for the named perils listed above, plus others, including damage from burglary; falling objects; freezing; electrical surges; and weight of ice, snow or sleet.
An “all-risk” homeowners policy differs from a named perils policy by covering damage or loss caused by any peril, unless specifically excluded by the policy. Typical policies exclude losses due to earth movement, water damage, power failure, neglect, war, nuclear hazard and intentional loss. “All-risk” coverage costs more, but provides more comprehensive coverage for your property and liability exposures.