Breadcrumb Learn / Home / Article 4 min read What Does Homeowner's Insurance Cover? Homeowners insurance, or hazard insurance, covers you in the event of damage to or loss of your property. You should have enough coverage to: Rebuild your house Replace its contents Reimburse you for expenses incurred during rebuild/replacement Protect yourself in case someone gets injured on your property and sues you Structure It’s a good idea to have enough insurance to cover 100% of rebuilding your home. Make sure you have an accurate estimate of the cost of replacing your home, since construction costs can increase dramatically over the years. An insurance agent call help you determine that replacement cost. Possessions Most companies cover your possessions for 50% to 75% of the amount your home's structure is insured for. To help you decide if that’s enough coverage, talk with your insurance agent. Make sure your policy covers the replacement cost of your possessions and not the actual cash value, which decreases over time. Liability coverage Liability coverage is designed to cover unintentional injuries on the premises and unintentional damage to other people's property. Your insurance agent can help you decide what limits will best protect your assets. Riders Basic insurance policies don’t include theft or certain dangers when it comes to jewelry and have limited coverage. Riders (or endorsements) are additions to your homeowners policy, and coverage is generally limited to the risks covered by your policy. Discuss with your insurance agent any items of value that may warrant additional separate coverage. Last Updated: January 11, 2020 Home Related Content View All Home Content Calculator Mortgage Payment Calculator Home Article 5 min 10 Ways to Make Your Home Feel New Home Article 6 min Financing Your Dream Home with a Construction Loan Home Video 7 min Watch: 9 Questions First-Time Homebuyers Ask Home Article 30 min Mortgage Acronyms Home Article 2 min What is Escrow and How Does it Work? Home Article 5 min How to Save for a Down Payment Home Article 4 min What Are Closing Costs? Home Article 6 min 6 Tips to Navigate an Uncertain Real Estate Market Home Article 4 min Home Improvements that Pay Off Home Calculator Home Affordability Calculator Home Article 6 min How to Get Pre-Qualified for a Mortgage Home