Most people simply can’t afford to rebuild their home and replace everything in it if there’s a disaster. A home insurance policy can protect your property, some of your personal possessions and you. It’s a package policy that combines two types of coverage:

Coverage against your property being destroyed or damaged by certain perils, such as fire, theft and windstorm
Coverage for liability exposure – for example, someone being injured on your property

With the right home insurance coverage, you’ll feel comfortable knowing that, in the event of a disaster, your property is protected.

No matter what type of home you own, personal property insurance is your responsibility. If you live in a condominium, remember that the condo association or cooperative won’t pay for damage caused inside your unit, even if it results from an incident outside of your control, such as a pipe bursting or an electrical fire.

If you live in a free-standing property, in addition to insuring your personal property inside, you must also protect your “dwelling,” or the physical structure of your home. Make sure you purchase enough home insurance to cover rebuilding your home from the ground up and replacing everything inside.