As a homeowner, insuring your property is particularly important. Most mortgage companies require adequate coverage to protect your home from damage and loss. Homeowners insurance coverages fall into three broad categories.
If a fire, storm, or other disaster damages your home, property damage coverage protects both your home and the other covered structures on your property, such as garages or sheds. The insurance company will also provide replacement value for the contents of your home—including clothing, furniture and other items that are damaged or destroyed.
Homeowners insurance coverage for personal liability provides protection from lawsuits filed against you. The level of coverage is calculated using the value of your assets. An insurance professional can help you determine how much personal liability coverage you need.
The cost of replacing the contents of your home is calculated as a percentage of what the structure of your home is worth. If you own high-value assets such as antiques, fine jewelry or fine art that may fall outside the predetermined percentage, you can purchase a rider to insure these items under a separate policy. Likewise, you can obtain an umbrella policy to provide you and your family with additional personal liability protection of $1 million or more.
An insurance professional can help you obtain adequate coverage to meet your individual needs.