The most basic form of home insurance is the Homeowner’s Policy. It covers four areas: The House Structure, that includes all the personal properties within the house. The Liability protection and coverage is for added living operating cost when something stops you from living in your home. The first coverage area means that the insurance company would pay for the revamp or rebuild of the house in case of fire and any other disaster listed in your policy. The next covers your possessions say they are stolen so the insurance pays for that stolen item based upon its face/assessed value. The next two will be discuss further in the next entry.