What Does Homeowner's Insurance Cover?

Homeowners insurance, or hazard insurance, covers you in the event of damage to or loss of your property. You should have enough coverage to:

• Rebuild your house
• Replace its contents
• Reimburse you for expenses incurred during rebuild/replacement
• Protect yourself in case someone gets injured on your property and sues you

Structure

It’s a good idea to have enough insurance to cover 100% of rebuilding your home. Make sure you have an accurate estimate of the cost of replacing your home, since construction costs can increase dramatically over the years. An insurance agent call help you determine that replacement cost.

Possessions

Most companies cover your possessions for 50% to 75% of the amount your home's structure is insured for. To help you decide if that’s enough coverage, talk with your insurance agent.

Make sure your policy covers the replacement cost of your possessions and not the actual cash value, which decreases over time.

Liability coverage

Liability coverage is designed to cover unintentional injuries on the premises and unintentional damage to other people's property. Your insurance agent can help you decide what limits will best protect your assets.

Riders

Basic insurance policies don’t include theft or certain dangers when it comes to jewelry and have limited coverage. Riders (or endorsements) are additions to your homeowners policy, and coverage is generally limited to the risks covered by your policy. Discuss with your insurance agent any items of value that may warrant additional separate coverage.