You want to protect your home with a home insurance policy.  But do you really know what a home insurance policy covers?  Here are some fast facts to keep you in the loop on home insurance policies.

A Home Insurance Policy is About Home Protection

The reason you need a solid home insurance policy is basic: to protect your home.  A home insurance policy covers damage from fires, storms, wind, even lightning.  With a home insurance policy in place, you will be able to repair your home should a tree fall on it or hail damage your roof.  If you have other structures on your property—like tool sheds or gazebos—your home insurance policy will cover damage to these as well. Homeowners need to be aware, however, that earthquakes and floods are not part of a standard home insurance policy, but an earthquake insurance policy, or flood insurance coverage can usually be added.

A Home Insurance Policy Protects Your Belongings

When a fire burns a home it takes the contents with it.  When you purchase a home insurance policy, items such as electronics, jewelry, sports equipment, even art, are all covered.  The amount and scope of coverage varies from home insurance policy to policy, so if you have expensive items such as heirloom jewelry or pricy electronic equipment, you might think about purchasing extra coverage (often called a home insurance policy “endorsement” or “floater”) to protect those specific items.  To ensure all your possessions are covered by your home insurance policy, keep an up-to-date home inventory.

A Home Insurance Policy Protects Your Finances

An important part of a home insurance policy is liability coverage.  Should an accident happen in or around your home, liability coverage protects you from lawsuits.  Let’s say your dog decides to dig up your neighbor’s prized rose garden. Your home insurance policy liability coverage will pay to replace the flowers. Or should a guest slip on a rug—the medical coverage portion of your home insurance policy will pay for the injured party’s immediate medical care up to your home insurance policy amount.  It is important to note that home insurance policy liability coverage covers injury to people and damage to property other than your own.

Now that you know how your home will be protected with a home insurance policy, compare multiple home insurance policy quotes to find the best coverage for you.