Home Insurance basics

A standard homeowners policy bundles several protections. Knowing each one helps you set the right limits and avoid coverage gaps.

Dwelling coverage pays to rebuild your home after a covered loss — base it on rebuild cost, not market price. Other structures covers detached items like a fence or shed. Personal property covers your belongings, though valuables like jewelry may need a rider.

Loss of use pays living expenses if your home becomes uninhabitable. Personal liability and medical payments cover injuries to others.

Standard policies do not cover floods or earthquakes — those need separate coverage. Renters and condo owners need their own policies because the building owner's insurance does not cover your belongings or liability.