Overview of Homeowners Insurance

Homeowners Insurance is an important but very complex aspect to owning a home. Actual laws and policies are different from one state to another, but I will give basic details that apply to most policies. You may decide information for your State and region from a licensed agent. If you’re just renting a home, you ‘d need renters insurance while different mobile home insurance and holiday home insurance policies are also available, basically similar in concept but with additional wording that applies to those types of risks. Any standard homeowner insurance policy shall cover damage to the house and personal property, to a limit specified in the policy, caused by the following hazards: storms (wind, hail, rain and snow) and tornadoes, fire and lightning.

PLEASE NOTE: Homeowners in high-risk states (Alabama, Florida, Louisiana , Mississippi, North Carolina , South Carolina and Texas) must buy special tornado, earthquake, hail and flood safety Windstorm Insurance. This coverage is not available on a standard insurance policy for homeowners, and is more expensive. Earthquake insurance is also a separate and more expensive policy in California ($800-$ 1600 per annum premium).

Homeowners’ Insurance Components

The part of the responsibility (coverage E) covers the homeowner from injuries or incidents arising on the property under protection. With this protection the owner of the home is protected from lawsuits arising from these events. Note that this section does not include disease transmission nor does it tackle concerns resulting from drug trade and controlled substances.

The contract’s property section protects the home owner against loss due to fires, burglary and minor harm to the environment. It is important to remember that significant damage to the environment is not included in regular contracts most times. Insured persons who live in areas prone to natural disasters should be advised to buy additional protection to cover those risks. Flood, earthquake, hurricane, and tornado damage are not necessarily covered by standard contracts, so make sure that precautions are taken based on where you reside.

Also covered is liability insurance for injuries or harm to members of the public or property incurred by an incident on your premises, up to defined limits, as well as loss of use due to downtime during repairs.


In case of a catastrophe, you can make sure that the liability limits of your insurance plan are high enough to cover full compensation as well as other expenses. A licensed Home Insurance Agent will give you full advice.

Insurance and Exclusions

Riders and exclusions may also be added to a scheme. Insurance Riders have coverage for things that are not usually protected, or may increase the minimum coverage limits. Exclusions do exactly as they say without listed products or coverage risks. Flood and earthquake exposure is exempt from a standard policy, so you’d need to buy additional protection for those risks.

Furthermore, whether you are running a company from home or from home, you may need additional work-related security threats, such as people coming to visit you on company. For an additional premium, costly jewellery or other high-value objects will need to be listed in a rider against damage or loss. Otherwise, Jewelry, Antiquities and Electronic Equipment coverage limits. If standard coverage limits are insufficient to cover your belongings, then you will need to increase them.