For most people, a home is their largest asset. And the loss of this asset--as a result of property damage or in the event of a lawsuit--could result in the loss a lifetime of hard work and eliminate financial security for you and your family. This is why it makes sense to protect you and your family with a comprehensive homeowners plan. The basic protection that you need includes building and structure of your property, personal belongings or contents (e.g., furniture, clothing, appliances, etc.), additional living expenses in the event that you and your family should become temporarily displaced, and your personal legal liability for the injury of others while on your property.
Some additional features you should consider when taking steps to increase your protection as a homeowner might include flood insurance, securing coverages for jewelry and other fine collectibles, back up of sewers and drains, and identity theft. You may also wish to consider insuring your contents for their guaranteed replacement costs versus their actual value. The former coverage will give you the dollars to replace your contents, while the latter will cover the cost of contents, less depreciation. You have worked hard to acquire your assets and they deserve to be protected.
A package policy for dwelling and contents risks combining fire and allied line coverage with comprehensive personal liability and theft insurance for homeowners and tenants. This policy carries an indivisible premium in that the premium is not separately stated or broken down for the various hazards insured against. There are different homeowners forms, varying in extent of coverage and cost from the broad cause of loss policy (HO2), to the special cause of loss policy (HO3), to the renter's policy (HO6).