Published: 04 January 2013
You need enough insurance to cover the following:
- The structure of your home
- Your personal possessions
- The cost of additional living expenses if your home is damaged and you have to live elsewhere during repairs
- Your liability to others
The Structure of Your Home - back to top
Your home is your biggest investment. We can make sure you have the proper coverage. Our agents use the latest tool to help determine the coverage and policy needs of your home.
Your Personal Possessions - back to top
Most homeowners insurance policies provide coverage for your personal possessions.
To determine the amount of coverage needed to protect your personal property, you need to conduct a home inventory (see Take a home inventory). This is a detailed list of everything you own and information related to the cost to replace these items if they were stolen or destroyed by a disaster such as a fire.
There may be limits on how much coverage is automatically provided for certain items such as jewelry, silverware, furs and guns. Your agent will be able to advise you on how to obtain additional coverage if needed.
Additional living expenses after a disaster - back to top
This is a very important feature of a standard homeowners insurance policy. This pays the additional costs of temporarily living away from your home if you can’t live in it due to a covered loss.
Liability to others - back to top
This part of your policy covers you against lawsuits for bodily injury or property damage for which you are legally liable. It pays for both the cost of defending you in court and for any damages a court rules you must pay, up to the limit of liability. You should purchase enough liability insurance to protect your assets.
Umbrella or excess liability
If you own property and or have investments and savings that are worth more than the liability limits in your policy, you may consider purchasing an excess liability or umbrella policy. Umbrella or excess liability policies provide extra coverage. They start to pay after you have used up the liability insurance in your underlying home (or auto) policy. An umbrella policy is not part of your homeowners policy. You have to purchase it separately. Contact a Farm Bureau Insurance agent for details.