Insurance Basics  
The program features or coverage descriptions outlined on this
site are general and for information purposes only. Your policy
terms and conditions would determine actual claim coverage in the
event of a loss.
For most people, their home is their single most valuable
possession and their biggest investment. Homeowners insurance protects
your investment as well as your family and your household possessions.
If you suddenly lose your home due to fire or natural disaster,
or the contents are damaged or stolen, you probably couldn't afford
to replace everything all at once. If you are sued because of injury
or damage caused by you on your property, the cost of defending
that suit could run into thousands of dollars in legal fees regardless
of the outcome of the suit.
Most homeowners insurance policies have features that
allow you to custom design a policy that's right for you. Traditional
homeowners programs offer protection for your home's structures,
protection for your personal property, and liability coverages.
If you own a condominium, your condo association probably
has a master policy that insures all the property and common areas
that are collectively owned by the unit owners. These policies usually
cover the actual structure of your home, so you don't need to purchase
this coverage separately. However, the association policy doesn't
cover your personal property or your legal responsibility, and it
may not cover improvements you make inside your unit.
If you rent your home, your landlord or property owner
probably has insured your building. However, this policy doesn't
cover your personal possessions within your apartment. Renters insurance
would protect you in the event of a loss.
Homeowners insurance is designed to return your home
and possessions to the same condition they were in before a loss
occurred. Many different types of policies are available, and not
all coverages are the same or are available in all states. Choosing
the right coverage is important. Here are some things to consider:
- The structure of your home, which includes the cost of rebuilding
or repairing if it is damaged or destroyed by covered perils.
Most policies have specific exclusions. Make sure you understand
what causes of loss aren't covered.
- Your personal property. Know the value of your home's contents.
- Liability coverages. Think about the assets you need to protect
in the event of a lawsuit against you.