Homeowners’ insurance covers different forms of damage. The one commonality is the damage must take place in a home or on the policyholder’s property. This form of coverage generally covers some or all of the costs related to fire or vandalism in the home. Following this damage, the homeowner contacts their insurance provider to request a claims agent. The agent inspects the damage, verifies the cause of the damage, and provides an estimate to repair or rebuild the home. Keep in mind that damage from floods and earthquakes is not covered by a traditional policy.

In addition to the property, the policyholder also benefits from policies that cover possessions that are damaged or stolen. The homeowner must have an approximation of the valuables within the home when buying a policy. The worth of the possessions affects the premiums and the policy limit.

Most policies include liability coverage, which is protected should a friend, neighbor, or guest get injured on the property. Coverage would cover the costs should the injured party decide to sue. Homeowners insurance is the best way for a homeowner to protect themselves.