The Homeowners’ Insurance Policy
The Homeowners’ Policy provides protection against the financial consequence of a personal loss. A homeowners’ policy is a combination of property and liability coverages and is tailored to meet the needs of a homeowner.
DWELLINGS
This coverage applies to the dwelling and attached structures. The limit of insurance for the dwelling is based on the value of the home and what it would cost to replace the home.
PERSONAL PROPERTY
This coverage applies to the personal property (furniture, clothing, etc.) of the homeowner. The limit of insurance is selected by the homeowner. Some coverage is also provided on a worldwide basis for the personal property of the insured. This provides coverage for the insured when he or she is traveling. Special limits apply to some types of property, and some types of property are excluded from coverage.
PERSONAL LIABILITY
Section II of the homeowner’s policy provides liability coverage for personal loss exposures. The policy provides liability coverage if a claim is made or suit is brought against an insured because of bodily injury or property damage. Coverage is provided for the named insured and members of the insured’s household who are relatives.