Home insurance

Q1. What is home insurance?
Home insurance, also called homeowners’ insurance or property insurance, is a policy that provides financial protection for your home and its contents in case of damage, theft, or loss. It also offers liability coverage if someone is injured or their property is damaged while on your property.

Q2. What does home insurance typically cover?
Most policies include:

• Dwelling Coverage: Protection for the physical structure of your home (walls, roof, floors, attached structures) against risks like fire, windstorms, hail, lightning, and vandalism.
   
• Personal Property Coverage: Protection for belongings such as furniture, clothing, appliances, and electronics against covered perils.
   
• Liability Coverage: Covers legal and medical expenses if you’re responsible for injuries or property damage to others.
   
• Additional Living Expenses (ALE) or Loss of Use: Pays for temporary housing, food, and other living costs if your home is uninhabitable due to a covered loss.
   
• Medical Payments to Others: Pays for medical expenses if someone is injured on your property, regardless of fault.
   

Q3. Are there optional coverages available?
Yes. Home insurance policies can include:

• Coverage for high-value items like jewelry, art, or collectibles (often requiring special endorsements).
   
• Flood or earthquake insurance, which usually require separate policies or riders.
   
• Additional liability protection through umbrella policies.
   

Q4. Why is home insurance important?
It safeguards your home, personal property, and financial security, ensuring you can rebuild, replace belongings, and protect yourself from liability claims without facing devastating out-of-pocket costs.

Q5. Does homeowners’ insurance cover all types of damage?
Not always. While it covers common perils (like fire, theft, or wind damage), separate policies may be needed for floods, earthquakes, or certain high-value items. Reviewing your policy is important to make sure you have full protection.

Q6. Who needs home insurance?
Any homeowner, condo owner, or property owner should carry home insurance, both for personal protection and because most mortgage lenders require it as a condition for home loans.