Basically homeowners insurance provides financial protection in case of damage to your property. It also includes financial protection for injuries and damages you have caused to others. This means that if a disaster strikes your home, your home and its contents are protected by your policy.

Generally, homeowners insurance is a package policy which covers the property and the liability for any injuries and damages to property you or your family have caused to others. Pets are considered as family members the damages they may cause are also included. Although damages caused by disasters are the major coverages of the homeowners insurance, there are exceptions, such as poor maintenance damages, damages caused by flood and damages caused by earthquake. For the earthquake and flood types of damages, you have to purchase different policies. As for maintenance to the house, it is considered as the responsibility of the owner and not covered by any insurance. In other words, the standard homeowner insurance policy actually includes four basic coverages: coverage for the structure of the home, coverage for personal belongings inside the house, liability protection and additional living expense if the home temporarily is unlivable.

The structure of the home coverage shall pay for the repair or rebuilding of your home in case it was destroyed or damaged by disasters, such as fire, hurricane, lightning and other disasters. Again flood and earthquake damages are not included. Most policies cover structures that are not attached to the home but part of it, such as the gazebo, garage and others. When you buy your homeowner insurance it is important to buy enough coverage to rebuild the house. The personal belongings coverage are the furniture, equipments and personal items. These are covered if they are destroyed by the disaster or if they are stolen. You choose a company which offers up to 70% of the amount of insurance for your personal belongings. The best way however, is to make a home inventory if you want to make sure you have enough coverage for personal belongings. The liability protection shall pay for the damaged you and the members of your family have caused to others. This also includes the legal costs of your defense and court awards in case you get sued. The additional living expense shall pay for your temporary hotel bills, meals and other living expenses for the duration of the repair to your house caused by the disaster.