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What is Homeowners Insurance?

A home is probably your biggest single purchase, so, understandably, you want to protect that investment. One way to do this is to stay on top of the inevitable repairs and maintenance that keep your home in good condition. Another way is to buy a good homeowners insurance policy.

Homeowners insurance is a type of property insurance that protects your home and other valuables. An ideal policy covers damage and loss of your home and personal belongings. This protects your assets from liability claims, such as personal injury and pet-related incidents.

Coverage of Homeowners Insurance

Each insurance policy covers a specific “danger” – the accident against which you are protected. According to the Insurance Information Institute, some of the common hazards covered by standard homeowners policy include:

  • Damage to aircraft, cars, or vehicles
  • Explosion
  • Falling object
  • Fire and smoke
  • Lightning strike
  • Riots or civil unrest
  • Theft
  • Vandalism and corrupt mischief
  • Volcanic eruption
  • Water damage (from inside the house only)
  • The weight of ice, snow, and slit
  • Storms and hail

How Many Homeowners Insurance do I Need?

The amount of coverage for each homeowner will vary significantly depending on their unique situation. Your agent can help you calculate the value of your home to use as an amount of home coverage. In general, homeowners insurance policies are calculated as the amount of housing coverage, including secondary coverage. For example, coverage of other structures is usually set at 10% to 20% of the cost of accommodation coverage. So, for a $250,000 home, coverage of other structures would typically be $25,000 to $50,000.


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