Homeowner's Insurance

Homeowners insurance is a package policy, providing both property and personal liability insurance.

What's covered
Most Homeowners policies pay for damage  to the structure and contents of your home by a covered peril. A covered peril is a sudden and accidental event or a theft that causes damage or loss. Covered perils may vary by policy type and company, so make sure your policy covers the perils that are common to your area. A general homeowners policy is not intended to cover situations that are too unpredictable to insure against, such as flood and earthquake. Special policies are usually available to insure against these uncovered perils.

The typical comprehensive policy covers the house, garage and other structures on the property, and personal property inside the house against a wide variety of perils. Perils include, but are not limited to, fire, windstorm, riot or civil commotion, theft and vandalism, and accidental water damage from a plumbing, heating, or air-conditioning system or domestic appliance.

Trees and plants are not covered against windstorm damage.  However, homeowners insurance will cover damage to an insured structure caused by a tree that fell during a windstorm and will pay to remove the tree.

The typical homeowner's policy includes coverage on personal property anywhere. That means that policyholder belongings are insured against theft even when they're not inside the house. Coverage would apply to theft of luggage, golf clubs, and other belongings while the insured is traveling.

What's not Covered
Damage caused by earthquake, external flooding and nuclear accident is not covered.  Nor is theft or damage of furs, jewels, coin or stamp collections, or antiques.   Any damage or loss connected to a home business won't be covered by a standard policy.   However, coverage is usually available and can be purchased separately.

Another type of additional coverage is a Guaranteed Replacement Cost Policy. Most homes are insured for the value of the home, which may or may not be enough to cover the cost of rebuilding. This protection provides coverage for replacement value -- what it would cost to replace your home rather than just build another house. This is particularly important if you have a unique or historic home. This type of coverage allows the insured to rebuild, regardless of cost, and include the special wood moldings and other more expensive details.

The Cost
The cost of homeowners insurance depends on location, age, and construction of the house and what it would cost to replace. Building costs can vary dramatically from one part of the country to another.  Another consideration is the neighborhoods quality of local fire and police protection.