HOMEOWNERS BASICS

• What is homeowners insurance?
  
• What is in a standard homeowners insurance policy?


• Are there different types of policies?


• What type of insurance do I need for a co-op or condo?


• Does my homeowners insurance cover flooding?


• What type of disasters are covered?


• Can I own a home without homeowners insurance?


• Can I get insurance if I rent my home?


• How do I take a home inventory and why?


• What's the difference between cancellation and nonrenewal?

What is homeowners insurance?

Homeowners insurance provides financial protection against disasters. A standard policy insures the home itself and the things you keep in it.

Homeowners insurance is a package policy. This means that it covers both damage to your property and your liability or legal responsibility for any injuries and property damage you or members of your family cause to other people. This includes damage caused by household pets.

Damage caused by most disasters is covered but there are exceptions. The most significant are damage caused by floods, earthquakes and poor maintenance. You must buy two separate policies for flood and earthquake coverage. Maintenance-related problems are the homeowners' responsibility.