What Is Homeowners Insurance?

Homeowners insurance protects you financially from losses related to the home you own or are purchasing. (If you rent your home, you would need insurance for renters.) 

If your home is damaged or destroyed by a fire, homeowners insurance can cover the repair or rebuilding of your home. If thieves rob your home or vandals damage it or your personal property, homeowners insurance can cover the repair, replacement or recovery of that property. If you are sued by someone who is injured in your home, you can turn to your homeowners insurance for help. If you find yourself liable for damage to someone else’s home or property, your homeowners insurance can protect you from financial destruction.

These are all examples of what insurers call a “covered event” — that is, a risk or a loss that the insurance company will compensate you for if something happens to your home or its contents — or if you become responsible for a loss related to someone else’s home and property. Specific covered events vary depending on the insurance company and the policies it offers.

A standard homeowners insurance policy generally includes four types of coverage: structure, personal property, personal liability, and added living arrangements. Depending on the policy you choose, there may be limits on the types of covered events and the amounts that will be paid if you suffer a loss resulting from a covered event.

An INSURENEX team member can help you determine which option is best for your home and your specific situation.