Home insurance policies are customizable, and the cost of your coverage will depend on your policy. However, policies usually cover:
Home or Dwelling Coverage: This applies to damages from extreme weather, smoke, fire, vandalism, and theft. If you don’t have a rider, floods, earthquakes, and poor home maintenance may not be covered.
Liability Coverage: This is used if someone gets injured on your property and decides to sue you. Liability coverage helps pay for medical or legal expenses.
Personal Property: Dwelling coverage covers the interior and exterior of your house, but personal property coverage covers the things inside of your home. It’s a good idea to keep a log of everything you own so you can get your belongings back if disaster strikes.
Living Expenses: If a covered event occurs and you have to move out, this kind of coverage will help you pay for your temporary housing.
If a covered event occurs, you will be compensated to fix or rebuild your home. Read through your home insurance policy so you can know how much you will be compensated during a covered event. Some will pay cash value while others might offer a replacement cost value, but compensation will vary between policies.