What is homeowners insurance?

Homeowners insurance compensates you for losses to your home and your possessions inside it, so purchasing a homeowners insurance policy provides added security for your investment. Like renters insurance, homeowners insurance also protects you if you’re legally liable for someone’s injuries on your property, as well as from financial losses caused by storms, fire, theft and other events outlined in your policy.

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Different companies offer different homeowners insurance coverages, so choosing the right policy means finding the right mix of coverages to meet your needs.

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Generally, a standard homeowners insurance policy protects the following:

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1. The physical structure of your home (includes damage to fixtures, such as plumbing, electrical wiring, heating and permanently installed air-conditioning systems).

2. Structures on your property (storage sheds, pools, boathouses, fences, freestanding garages, guest quarters, etc., not attached to your house).

3. Your personal property and belongings inside your home including electronics, furniture, appliances and clothing, damaged or lost even when not physically on your property, such as a public storage space or with a family member attending school away from home, up to specified limits.

4. Your liability or legal responsibility for any injuries and property damage you or your family members cause to other people

5. Injuries to your household pets while inside your home

6. Additional living expenses if a fire or other insured disaster leaves you temporarily unable to live in your home.

For an additional fee, you can select optional homeowner’s insurance coverage, including:

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• Higher limits of liability for property damage or bodily injury

• Replacement cost for personal property

• Protection for valuables (jewelry, watches, fur, etc.)

• Additional coverage for electronics or computer equipment

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To make shopping for the right homeowner’s policy easier, take an inventory of what you own to decide the level of coverage you need. Whether you’re looking for cheap homeowners insurance or want the highest levels of coverage through the best homeowners insurance, it pays to shop around.