As a homeowner, it's important to understand the basics of your homeowners insurance police. In general, traditional policies cover the structure of the home, personal belongings within the home, liability in case an accident occurs in the home, and coverage for living expenses if your home is uninhabitable because of a covered disaster. You may also want additional coverage that will pay for damage that isn't covered by a traditional policy, such as earthquake insurance. You can also increase your limits for liability coverage.

How the Structure of Your Home Is Protected by Insurance

When the structure of your home is wrecked by a disaster that is covered under your insurance policy, your insurance coverage will pay for your home to be repaired or restored back to normal. Damage from a flood is usually not covered, so if you live in an area prone to floods, you'll want to purchase this coverage. Make sure that your policy limits include enough money to build your home in the event of a natural disaster.

The Items That You Own Within the Home

If you have a theft in your home, this will be covered by your homeowner's insurance policy. In addition, if your belongings are ruined because of a fire, or weather event covered under your policy, you can receive compensation to replace your ruined or stolen items. To understand if you have enough coverage, you will need to look over your belongings and estimate the total value. You will need a policy that would pay you enough to rebuild your home and replace your belongings if your entire structure is destroyed. While your valuables, such as electronics or jewelry are covered, you may want to add insurance to cover these expensive items for their full value as appraised.

Why You Need Liability Coverage

Your liability coverage protects you if you are sued for bodily injury to a person visiting your home. If you or one of your family members damages property, this may be covered by your policy. If your pet ruins property, your insurance coverage will pay for the damage. Liability coverage has limits, but it will pay for any legal fees associated with defending you in the event you are sued by a person who gets hurt at your home.

Living Expenses While You Wait for Your Home to Be Rebuilt

There are limits to the amount of coverage you will receive to pay for living expenses while you wait for your home to be built. You can purchase additional insurance to give you more money if you are unable to live in your home because of a disaster.

For more information, contact an insurance agency like Lanham Insurance Agency.