This type of insurance protects both your home and your belongings. Notably, these policies cover damages that you may be responsible for in addition to damages to your own property. While homeowner's policies and renters insurance are usually referenced together, they are different. For example, renters insurance typically only covers your own possessions and any part of the dwelling that you own such as refrigerator.

Homeowners insurance include 4 different types of coverage:

1. Structure of your home

2. Liability protection

3. Personal belongings

4. Expenses such as living expenses if you are forced from your home due to fire or other event covered by your policy

In addition, there are varying degrees of coverage and types of replacement. It is important to understand the differences to that you can make the best choices for our particular circumstance.

For example, the following are differing types of replacement coverage:

1. Cash Value: covers replacement minus the cost of depreciation

2. Replacement Cost: covers replacement cost without the deducting depreciation

3. Extended Replacement Cost: this coverage pays replacement costs without limits

Key Points:

Homeowners policies do not cover damages by floods, earthquakes or poor maintenance.

You must obtain separate policies to cover flood and earthquake damages.