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Homeowners insurance can be confusing, to say the least. Here's a quick rundown on what homeowners insurance covers in simple terms. What Does Homeowners Insurance Cover? Homeowner insurance covers the following: 1. The structure of your home and other structures on your land 2. Your personal property - furniture, clothing, electronics, appliances, etc 3. Your additional living expenses when your home is damaged and you need to live elsewhere 3. You, when someone is hurt and you're found to be at fault What is home structure coverage? Home structure coverage pays to rebuild or repair your home after it's been destroyed or damaged by vandalism, fire, plumbing leaks, or storms. The amount of home structure coverage you need should be enough to rebuild your home. To figure out how much coverage you need, call a local real estate agent or builder to find out the square-foot building costs in your area. Then multiply that figure by the square footage of your home. What is personal property coverage? Personal property coverage pays to replace your personal possessions after they've been stolen, or damaged by fire, vandalism, plumbing leaks, or storms. The amount of coverage you need should be enough to replace all your personal property. Standard policies provide coverage equal to 50% to 70% of the amount of your home structure coverage. To determine if this is enough, take an inventory and total up the value of everything you own. What is additional living expenses coverage? Additional living expenses coverage pays your expenses when your home has been damaged by fire, vandalism, plumbing leaks, or storms, and you need to live elsewhere. It covers your hotel and restaurant bills plus other living expenses. Standard policies provide additional living expense coverage equal to 20% to 25% of your home structure coverage. What is personal liability coverage? Personal liability coverage protects you from lawsuits when you, your family, or your pets injure someone or damage their property. It pays for the other person's medical expenses and property damage expenses, plus your court costs and legal fees. Standard policies provide a minimum of $100,000 worth of coverage, but if you have a lot of assets to protect you can purchase additional coverage. Where can I get cheap homeowners insurance? The easiest way to get cheap homeowners insurance is to comparison shop online, and the best way to do that is to visit an insurance comparison website where you can get rate quotes from a number of insurance companies all in one place. Some of these sites even let you talk with insurance experts who can answer all your questions and give you money-saving advice. (see link below). Visit http://www.LowerRateQuotes.com/homeowners-insurance.html or click on the following link to get homeowners insurance quotes from top-rated companies and see how much you can save. You can get more insurance tips in their Articles section. The author, Brian Stevens, is a former insurance agent and financial consultant who has written a number of articles on what homeowners insurance covers.
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