Not all policies are replacement value policies. Liability Insurance Liability insurance covers the risk of a person being injured on the insured property. The extent of the coverage depends on the terms of the particular insurance policy. Homeowner's Policy A homeowner's policy is a major type of property insurance. Losses to real property because of fire, lightning, vandalism, windstorms, freezing, and other perils Losses to personal items in the home damaged or destroyed by theft or the perils covered by the policy Personal property lost or stolen outside the home such as goods stolen from your car Most banks require homeowners with mortgages to buy a homeowner's policy to protect the bank's collateral.
Banks usually require condominium and co-op owners to purchase homeowner's insurance.
Renters may choose to purchase insurance for their personal possessions in case of fire, theft, or other loss. Homeowner's insurance also provides liability coverage up to the dollar limit of the policy in case a person is injured on the property. The Martindale-Hubbell Law Directory is the most complete, trusted source for identifying qualified legal counsel. Your access to and use of this website is subject to additional terms and conditions . Reed Elsevier Inc. All rights reserved.