Homeowners insurance helps pay to repair or rebuild your home and replace personal property due to a covered loss. The term “homeowners’ policy” simply means you have a package policy that includes coverage (1) against the insured’s property being destroyed or damaged by various perils (causes of loss) and (2) coverage for personal liability exposures of the insured. A homeowners’ policy includes coverage for the residence premises, unattached structures, personal property and personal liability.
Personal Liability covers you for non-automobile related injuries to other people, or damage to their property, for which you are legally responsible. It also provides coverage for your defense in the event you are sued by the injured party. While a “homeowners’ policy” is the most common and the most desirable there are other property forms available.
There are various types of residential insurance including homeowner, condominium, renters and mobile home. All of these types provide property and liability coverage. The property coverage insures against perils such as water damage, fire, wind, hail, vandalism, and theft. The perils covered depend on the type of policy you purchase.