Your home represents the largest investment you will make in your lifetime. You need to make sure that you protect your investment with homeowner's insurance. This insurance will protect you from financial loss due to theft or peril, and will cover the physical structure as well as the contents. It also will provide additional living expenses should you be displaced while your home is being repaired or rebuilt. It further will provide guest medical payments and a certain amount of personal liability coverage should someone be injured while visiting your home and decide to sue you.
Most homeowner's insurance policies will repair or replace your home and your personal property that is damaged, destroyed or stolen as the result of fire or lightning, windstorm or hail, explosions, smoke, vandalism, theft, damage by glass, electrical surge damage, or water-related damage from home utilities.
In addition to your house, your insurance policy will replace your contents up to a certain amount, usually a percentage of your total home insurance value. This will include bare necessities like furniture, towels, sheets, telephones, dishes, utensils, groceries, pots, pans, clothes, toiletries, shoes, and coats. It also will replace your stereo, TV, CDs, pictures, vacuum, books, camera, computer, etc. Just imagine everything that you own, and then imagine losing it all due to a fire or severe storm. This is why you have homeowner's insurance.
The purpose of this section is to ensure that you have the right type and amount of homeowner's insurance protection. This will entail getting educated, determining your needs, evaluating your existing policy, and making any necessary changes.
Step One - Locate Your Policy