Property Damage Coverage

Property damage is useful in the event of what's known as "peril": fire, hail, a tornado. Some perils like floods or earthquakes are only protected against with additional coverage, so they are not part of the basic coverage package. Property damage insurance helps repair your home and your personal property in the event of a peril.

Personal Property Insurance

Property damage insurance will cover your personal belongings in the event of peril, but in the event of theft or certain accidents, personal property insurance is the coverage you need. All the contents of your home that you or your family own (if they are covered under your policy) will be covered up to 50% of the value of your home. So if your home is insured for $100,000, you have $50,000 worth of personal property insurance, which is why it's usually a good idea to insure separately high-valued policy.

Additional Living Expense Coverage

Also known as Loss of Use coverage, Additional Living Expense insurance will cover the extra costs of rebuilding or renovating your home. Often when damage is substantial, families must move to a hotel or rent an apartment while their home is being rebuilt. Additional Living Expense coverage will give you money for these accommodations. This extends to expenses occurred if you are denied access to your home by government order. Be aware that this policy is subjected to duration limits, and is usually closer to a modest standard of living than a generous one.

Personal Liability Insurance

Personal liability coverage is a policy which protects you or your family members from claims or lawsuit. There are two main types of lawsuits that you are protected from: lawsuits resulting from injury on your property (non-auto and non-business) and claims or lawsuits resulting from property damage to others for which you or your family are responsible. Personal liability insurance includes money for defense costs until the limit of the liability has been exhausted—after that, you're on your own.

Medical Payments Insurance

Closely tied to Personal Liablity Coverage, Medical Payments Insurance helps pay for the medical injuries that result from an injury on your premises, as well as adjoining property (like a sidewalk or an alley). Medical payments insurance does not, however, apply to injuries that result from auto accidents, or your own injuries that occur in your home. In addition, if you are running a home business, Medical Payments coverage does not apply to injuries as a result of your business, or when someone else is renting your property.