Homeowners Insurance Basics

Homeowners insurance provides financial protection against disasters. This includes damage caused by household pets.Damage caused by most disasters is covered but there are exceptions. Standard
homeowners policies do not cover flooding, earthquakes or poor maintenance.
Earthquake coverage is available either in the form of an endorsement or
as a separate policy. Most maintenance-related problems are the homeowners’
responsibility.A standard homeowners insurance policy includes four essential types of
coverage. They include:

Coverage for Personal Belongings Homeowners

1. 
   It will not pay for damage caused by a flood, earthquake or routine wear and
   tear.
2. Most
   companies provide coverage for 50 to 70 percent of the amount of insurance on
   the structure of a home. This part of the policy includes off-premises coverage.
   This means that belongings are covered anywhere in the world, unless the policyholder has decided against off-premises coverage. Expensive items like jewelry,
3. furs and silverware are covered, but there are usually dollar limits if they are stolen.
   Trees, plants and shrubs are also covered under standard homeowners insurance—generally up to about $500 per item. Perils covered are theft, fire, lightning, explosion, vandalism, riot and even falling aircraft. They are not covered
   for damage by wind or disease.

Liability Protection

Additional Living Expenses

This pays the additional costs of living away from home if a house is inhabitable due to damage from a fire, storm or other insured disaster. It covers hotel
bills, restaurant meals and other extra living expenses incurred while the home
. Coverage for additional living expenses differs from company to
company. Many policies provide coverage for about 20 percent of the insurance
on a house. . Some
companies sell a policy that provides an unlimited amount of loss-of-use coverage, but for a limited amount of time.
Additional living expense coverage also reimburses homeowners who rent

Types of Homeowners Insurance Policies
There are several types of homeowners insurance policies that differ in the amount
of insurance coverage they provide. The different types are fairly standard throughout the country. However, individual states and companies may offer policies that
are slightly different or go by other names such as “standard” or “deluxe.” People
who rent the homes they live in have specific renters policies