Homeowner’s Insurance

Insurance

Homeowner's insurance covers your dwelling, personal property, liability for accidents on your property, and additional living expenses if your home becomes uninhabitable. Standard policies (HO-3) cover most perils except floods and earthquakes (separate policies required). Replacement cost coverage rebuilds at current construction costs; actual cash value depreciates — always choose replacement cost. Personal property typically covered at 50-70% of dwelling value; high-value items (jewelry, art) need scheduled riders. Mortgage lenders require homeowner's insurance escrowed in monthly payments. Shop every 2-3 years; bundle with auto for 10-20% discounts. Document possessions photographically for easier claims.