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Homeowner’s Insurance

Homeowners insurance is designed to pay for damages to your home and its contents in case of perils that are covered in the contract. It can also protect you from financial liability if someone is injured on your property. The average annual amount that a homeowner pays for homeowner’s insurance is $500. It is a wise investment to protect your financial investment in your house should a peril occur.

Though you can purchase extra coverage, a basic homeowners policy may cover the following perils:

Lightning
Theft
Fire
Smoke
Wind
Explosion

Homeowner’s Insurance usually covers the following:

Damage to the dwelling and attached structures as well as unattached structures
Lawnmowers and other motorized vehicles that would not be covered by auto or other insurance
Personal property, including furniture
Additional living expenses while your home is being fixed
Expenses related to an injury on your property

Be sure to keep an inventory of your personal property.

You should carry enough homeowner’s insurance to cover the value of the home and contents. Consider a replacement cost policy which will cover rebuilding the home from the ground up, if necessary.

If you rent your home, be sure to look into renters insurance to protect the value of your personal property.

Damage from floods is not covered. Read your policy carefully to fully understand your coverage.