If you own or rent a home you should have homeowners insurance. Many people look past this type of coverage, but no one should. Regardless of whether you rent an apartment unit, condominium, own a house, acreage or even a town house, not being sufficiently covered can lead to great financial loss difficult to recover from. You home is the greatest financial investment you will ever make, not to mention all the money you spend on furnishings and items that make your house a home.

Every adult needs some form of homeowner’s insurance coverage, even if they are not aware of it. Not sure what homeowners insurance is and how it can benefit you? This type of coverage is a policy you get in exchange for an annual premium that provides protection for your dwelling, personal property and any lawsuits that you are held responsible for. Habitually there are 4 underlying or basic types of homeowner’s insurance coverage.

Types of Homeowners Insurance for You to Consider

Basic Liability : This type of insurance provides protection to you against lawsuits resulting from accidents occurring on your property you may be held responsible for. Damage to others or their property inflicted by your dog or children. Also covers you for damage, injuries or bodily harm to others caused by you on or off your property.

Personal Property: Coverage provides protection for the contents of your home, such as furnishings, clothing, sports equipment, electronics, appliances and other personal belongings. Collectors items such as artwork and jewelry customarily are not included and require a separate policy if you wish to have them insured.

Living Expenses: This type of homeowner’s insurance coverage provides payment of expenses incurred in case of temporary relocation due to repairs being done to your home, such as motels.

Dwelling Coverage : Provides payment for needed repairs or cost of replacement for your home, as well as to detached units and structures on your property, due to damages caused by fire, water, lightning strikes and other disasters. Examples of detached structures predominantly include tool sheds, barn and garages. Usually excludes damage caused by earthquakes and natural disasters, in some instances.

Factors that help to determine your premium:

- Crime rate in the area you reside
- How old your home may be
- Square footage
- Distance to nearest fire hydrant
- Type of home and how may levels
- Do you own a dog, and what kind?
- Property value
- Does your municipality or community have its own fire department?
- Type of heating system
- Type of locks on doors and windows, alarm system and security devices
- Is the area you live in at risk of natural disasters?
- Previous claims
- Condition of plumbing, roof and electrical
- Replacement costs