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Home insurance is also known as hazard insurance is the kind that safeguards personal homes and gives different personal insurance protection. A standard home insurance includes the physical structure of the house, personal possessions, liability protection and extra living costs when the house becomes inhabitable because of unforeseen calamities indicated in the policy. With home insurance, we can at least get back a portion of the losses we had. However, home insurance also has some particular limitations. It will not pay for the usual wear and tear of the house and damages caused by “acts of God” such as flood and earthquake.
The liability coverage by home insurance policy has limitations too. Liability coverages insure us against lawsuits for bodily injury or property damage that the family members and pets have caused others.It will pay for defense expenses and court awards up to the maximum amount allowed by the policy but it will not pay when others damage our possessions.