Basic Forms Of Home Owners Insurance

Liability Home Owners Insurance

Most home owners insurance policies provide a combination of liability and casualty insurance coverages. Liability insurance coverage provides payment in the event that someone is injured or dies while on your property or in the event someone in your household does something for which you may be liable within the parameters of the policy. It may also cover damage to someone else's property within your control or damage caused to someone else’s property as the result of your property. It provides coverage in case you are sued for one of these same reasons up to the amount of your coverage.

For example, if someone comes to your home and falls on your property, breaking their ankle in the process, your liability insurance would likely pay the medical bills for this injury. Other examples where liability coverage is important might include if your dog bit the mailman when he was delivering the mail or if a neighbor child was climbing the tree in your yard and fell out, breaking her arm. Liability coverage would also pay for damages to your neighbor's garage if a tree from your yard fell on his garage roof.

Casualty Home Owners Insurance

Casualty insurance coverage provides payment in the event your property is harmed or destroyed as a result of covered acts. Most home owners insurance policies provide coverage for losses to your home, garage, and other buildings on your property and their contents as the result of fire; most natural disasters like tornado, hail, or wind damage; theft; burglary; vandalism; and other losses. This coverage is broad and provides protection in the event of many potential perils. However, it does not cover anything and everything that could go wrong. It is important to ask about exclusions to your policy to be sure you clearly understand the limits of the coverage you are purchasing before you have a claim and find out something isn't covered.

For example, most home owners insurance policies do not provide flood coverage unless it is purchased separately or included as a special rider (additional coverage) to your policy. If you live in a flood zone or have even the remotest chance of flood damage, you will want to seriously consider purchasing additional flood insurance. While the coverage is generally not very expensive, it could mean the difference between losing everything you own and the ability to replace your home and possessions in the event of a flood or rising waters in your area.

*Other exclusions frequently include earthquake, war, and nuclear accident which may or may not be applicable possibilities in your area. The important thing is to check your policy, read the fine print, and know what is and is not covered.

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