| Your home is generally your most valuable asset, | | | | perils as Coverage A and B. Before you purchase |
| and is the number one possession you should | | | | insurance you should make a detailed inventory of |
| insure. In the event your home is destroyed by | | | | what you own, taking pictures of anything of |
| fire or other types of accidents that can occur, | | | | significant value. Anytime you upgrade or add to |
| you do not want to find yourself without the | | | | your belongings, call your insurance company and |
| means to rebuild. Likewise, it is important that you | | | | have them add new items to your coverage list. |
| insure your home for the amount it will actually | | | | Serial numbers of big-ticket items should also be |
| cost to rebuild it if it is destroyed, at the bare | | | | documented. |
| minimum. | | | | The third type of coverage is legal responsibility, |
| There are four basic types of insurance coverage | | | | also known as Coverage E o r personal liability |
| for your home. It is important to understand | | | | coverage. This coverage protects you from legal |
| what these are, and why you need them. | | | | expenses and medical bills if someone gets hurt |
| The first type of homeowner's insurance | | | | on your property. Generally speaking, most |
| coverage is for the home's structure. This is | | | | insurance companies will recommend at least |
| often referred to as Coverage A, or Dwelling | | | | $300,000 of combined legal and medical coverage |
| coverage. Coverage B covers structures on the | | | | per individual. You can purchase more if you |
| property that are not attached to your home | | | | desire. Some insurance companies will have a |
| such as detached garages or workshops. These | | | | separate section for medical expenses, which |
| types of coverage insures the structure of your | | | | covers minor bills due to injury on your property. |
| home and other important buildings from the cost | | | | For example, if your child's friend breaks an arm |
| of damages caused by theft, vandalism, snow, | | | | while at your house, medical coverage would |
| ice, fire, lightning, smoke, accidental flooding as a | | | | cover the emergency room bills and x-rays, while |
| result of your home's plumbing, damage from | | | | a major accident such as a porch collapsing during |
| vehicles, and other accidents. In some areas, such | | | | a party would be covered by liability, as it is more |
| as areas known for heavy snowfall, flooding, | | | | likely to result in multiple claims and legal |
| hurricanes, and earthquakes, you may need | | | | ramifications. |
| additional coverage to protect you. Be sure to | | | | Lastly, most insurance policies cover some type |
| pay careful attention to your policies list of | | | | of coverage for temporary living expenses, |
| exclusions and purchase extra insurance to cover | | | | known also as Coverage D or loss of use |
| these exclusions when necessary. | | | | coverage. This part of your insurance lets you |
| The second type of coverage is individual | | | | rest assured that if you are displaced from your |
| property coverage, also known as Coverage C or | | | | home following a claim that your temporary |
| personal property coverage. This protects the | | | | housing costs will be covered in addition to the |
| assets inside your home from the same types of | | | | repairs or rebuilding of your home. |