How does homeowners insurance work and what options are available?

A standard homeowners insurance policy covers four key areas:

1. Your home’s physical structure as well as other structures like garages or sheds
2. Your personal belongings  – whether in your home or elsewhere
3. Temporary living expenses if your house is uninhabitable due to a covered loss
4. Liability protection if someone is injured or their property is damaged

Many options are available to ensure you are properly covered, based on your individual needs. For instance, you may need to add a rider to your policy to cover valuable items, such as jewelry, guns, collectibles and more. Damages caused by flood and earthquakes are not covered in a standard policy, but additional coverage can be purchased if you live in an area where you would be at risk.