Know the basics of homeowner insurance with this simple guide  

No matter if you have owned a home for a decade or are just now settling into your first space, knowing the ins and outs of homeowner’s insurance is super important. Before you are able to make informed choices about the kind of coverage you need, you should know what is standard on all policies.

Standard insurance policies include the following:

Dwelling coverage

This is the basis for all policies and provides protection for the structure of your home. This includes floors, walls, ceilings, appliances, and attached structures. Dwelling coverage also helps protect your home against fire, hail, theft, and vandalism.

Contents coverage

Contents coverage is everything that is inside your home – from your furniture to your clothes and everything in between. If a covered incident occurs, contents coverage will reimburse you for the value of these items. 

Personal liability

The bodily injury, damage is covered under the personal liability umbrella of homeowner’s insurance. This includes costs if a guest in your home sustains some type of injury. 

Remember that dwelling coverage does not cover everything – no matter your specific policy limits. Because of this, it is an excellent idea to customize your particular policy to include coverage for things that might occur in your home. These optional, add-on coverages will change the cost of your policy, but will also help keep you and your loved ones protected, no matter what.

Optional coverage might include any of the following:

Flood insurance

Earthquake insurance

Replacement costs that offer additional coverage to help rebuild after a total loss

Water backup protects against sewer or drain backups

Personal umbrella liability insurance gives you additional policy coverage for bodily injury and property damage

Medical payments coverage will help provide payment for accidents that occur on your property

Other add-on options can include insurance law, which might help update an older home to fit current building codes. Other inclusions into your homeowner policy can cover your roof or specific valuables in your home.