Homeowners' insurance is a type of insurance that covers your home and possessions in case of unexpected, covered events. A basic plan typically has coverage limits that protect your property from certain unfortunate events so that you do not have to pay for expensive damage out of your own pocket.
It is important to understand your homeowners' insurance. A few key factors to pay attention to are the premiums, deductible, and coverage limits. A premium is an amount you will pay each month to maintain the insurance. Almost all homeowners insurance plans require the policyholder to pay a deductible - which is a specified amount of cash that they need to pay before their policy kicks in to cover the rest. Coverage limits are stated in the policy, such as liability limits up to 500,000. That means the policy will pay up to this amount; then, you would have to cover the rest.