Your home is probably your most valuable possession — an investment you want to protect. Homeowner’s insurance not only protects the physical structure and contents of your home, but also provides liability coverage if someone suffers physical injury or property damage while on your property. Of course, homeowner’s insurance also secures your financial responsibility to the mortgage company that financed your home purchase.

Homeowner’s insurance typically covers the following losses or damages from: fire, smoke, theft, vandalism, lightning, hail, windstorms, breakage from heavy snow and ice, civil disturbances, explosions, freezing of plumbing, damages from heating and air conditioning systems, aircraft, falling objects, and other causes.

Even though homeowner’s insurance provides broad and basic coverage that most everybody needs, it’s a good idea to get the advice of an insurance agent, especially if you think that certain circumstances might apply to your property.

Frequently asked questions about homeowner’s insurance

  1. What if I don’t own a home, but own a townhouse or condo?

    People who own townhouses and condos also need similar protection for the contents of their homes and for liability. Because townhouses and condos are shared structures, the coverage for damages to the physical structure and liability on the outdoor surroundings is normally covered by special insurance typically paid by the homeowner’s association.

  2. What if I rent an apartment? Do I need insurance?

    While you may not be required to have renter’s insurance, it’s a good idea. Your personal property includes things of value and importance whether you live in an apartment, condo, townhouse, or single family home. Renter’s insurance protects the physical contents inside your apartment against loss or damage and provides liability coverage.

  3. I’ve heard that other coverage, besides property and liability, might be needed. How do I know?

    Your homeowner’s insurance may not cover all your needs, especially if certain circumstances apply to your property and situation. For example, many homeowner’s policies do not include protection for damages from floods, earthquakes, or hurricanes. Actually, you can buy coverage for a variety of special circumstances and contingencies. These additions to a standard homeowner’s policy are called riders or endorsements.

  4. I operate my business from my home. Will my homeowner’s insurance cover my business needs?

    A study conducted by the Independent Insurance Agents of America found that a high percentage of home-based business owner’s were underinsured, believing that their homeowner’s insurance was sufficient. Typical homeowner’s insurance policies contain limits and exclusions that may preclude coverage of business property. Depending on the kind of business you operate, the materials and equipment used on your property, and other factors, your homeowner’s insurance simply may not cover your needs. If you operate a business from your home, you should consult with your insurance agent, who can help determine what kind of coverage is best for your situation.

  5. What should I do if I need to make immediate repairs — before the insurance company looks at my damage?

    Typically, you are allowed to make immediate and temporary repairs to prevent further damage or loss. Of course, you should notify your agent or company as soon as possible. If you need to make immediate repairs, you should document your efforts, take photos, and save all receipts. Most importantly, do not enter into any agreements with repairmen, contractors, attorneys, and the like, unless you have first spoken with your insurance agent and have his or her authorization. Proper claims handling is essential for getting the benefits you’re entitled to.

  6. What should I do if someone gets hurt on my property?

    First, seek professional medical assistance, if needed. Next, notify your insurance agent as soon as possible. Above all, however, do not discuss insurance-related matters with the injured party, lest you inadvertently waive some of your rights. Leave all insurance matters to your insurance agent.

  7. Does homeowner’s insurance have a deductible?

    Yes, like most other types of insurance, homeowner’s insurance has a deductible. The deductible is the amount of out-of-pocket expenses you pay before your insurance takes over and covers the remaining covered expenses. Like higher deductibles with auto insurance, homeowners who choose a larger deductible pay lower premiums for insurance. The amount of the deductible you choose should be based on your personal financial circumstances.