Property Insurance

• Property insurance which covers the house, but not the land, will typically insure against damage that results from fire, lightning, windstorm, hail, smoke, vandalism, theft, explosion, civil commotion, damage caused by aircraft or vehicles which hit the house. It covers accidental discharge or water overflow from a plumbing, heating, air conditioning, fire-sprinkler system or household appliance, but not from flooding. You usually must buy flood insurance separately. Earthquake insurance also requires a separate policy. Your policy may cover repair costs only or the cost to make the structural parts as good as new. Some policies include a provision to bring repaired items up to current code enforcement standards when necessary. These are important insurance factors that can result in your paying different premium amounts. Property insurance usually carries a provision that reimburses you for a fixed amount per day if you are forced to leave your house while it is repaired.
  
  

Other Structures

• A barn, a free-standing garage, a shed or other structures not attached to the house may also be insured if specified in the other structures part of the policy. You can frequently cover these items for the same perils as your house.
  
  

Liability Insurance

• If guests are injured, such as tripping over uneven pavement, or hurt by a fire while visiting, they can claim compensation and reimbursement for medical expenses related to their injury up to the liability limit set by your policy.
  
  

Personal Property

• In the case of appliances or furniture, your policy may replace the items with the same or equivalent new items. Artwork, jewelry, expensive clothes and other personal items may also be covered for small amounts. You can add riders to your policy so that specific items are covered at reasonable replacement amounts. You may wish to cover a sterling silver cutlery set or a diamond wedding ring. If a thief steals that ring from you while you are on a trip, your policy may still reimburse you the amount detailed in the rider for your loss.
  
  

Other Cost Factors

• Insurance companies often offer discounts on your household insurance if you also buy other policies, such as auto insurance, from them. You must be sure your home is insured for a sufficient percentage of the total replacement cost, or you may have trouble collecting the appropriate amount. You can reduce your premium payments by increasing the deductibles. The cost for a policy in which you pay the first $500 of any claim will be lower than the cost for the same policy if you pay only the first $100 of any claim.