Homeowners insurance is a type of property insurance that is designed to mitigate the expense of losses and damages suffered by or at an individual’s home. This includes damage to the home, injuries at the home, and damage to assets in a property.

Homeowners insurance typically covers several main incidents: interior or exterior damage, loss or damage of personal property, and injury occurring on the property. In the event that one of these events occurs in a way that is qualified by the insurance policy, than a homeowners insurance claim may be made to compensate for the damages suffered.

There are some types of events that are not covered under a standard homeowners insurance policy. One of the most common events that will need a separate policy is floods. Due to policy decisions on the part of insurers, floods are not covered as part of the standard homeowners insurance and are instead qualified as “acts of god.” Other acts of god include earthquakes and other unpredictable, devastating events.

Once a homeowner has suffered a qualifying incident, they can apply to their insurer to have the incident covered. Once submitted, the insurance will examine the incident and evaluate how much damage was caused. During the evaluation the insurance company will determine how much the company will cover and how much will be the homeowners responsibility as part of their deductible. Once the investigation has concluded, the insurance will award the homeowner the amount of their coverage.

The most important consideration when acquiring a homeowners insurance policy is the coverage limits as well as the deductible amount. The higher the liability coverage amount, the higher the percentage of damages that can be put toward repairing or replacing the property or assets.