Homeowners insurance protects your home from disaster.
According to the National Association of Insurance Commissioners (NAIC), homeowners insurance covers the structure and contents of your house in case of damage. It is also required by lenders as long as you have a mortgage.
Coverages
Some options available with this insurance include dwelling, which pays for damage to the house or structures attached to it; personal property, which covers your possessions; personal liability, which pays for legal liabilities; and loss of use, which gives you living expenses while your home is under repair.
Limits
Depending on how much you pay per year, your policy limits the amount of money it pays. It also specifies a deductible, which is the amount you have to pay for any damage before coverage kicks in.
More information
Visit a local insurance agent or your state insurance commissioner's website. If you have trouble locating them, go to the NAIC website, which can give you resources by state.
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