Information on Homeowners Insurance
Who Benefits
If you have tangible assets, you need the protection of a homeowners insurance policy. A well-written homeowners policy will pay to replace any of your personal property that is destroyed in a fire or other disaster. The policy will also be your first line of defense against a lawsuit from someone injured at your home.
How it Works
Many rating factors determine the cost of this coverage. However, the quality of the coverage is determined by the quality of the insurer and whether the policy is written on named peril or all-risk basis. A named-perils policy covers only those losses specifically cited in the contract. The all-risk policy works the opposite way — unless a peril is expressly excluded, coverage is provided. The all-risk policy is broader, and the burden of proof is on the carrier, not you, in the event of a loss.