Homeowners Insurance
Definition
A multi-peril insurance policy that covers your home's structure, personal property, liability, and additional living expenses in a single package. The standard homeowners policy (HO-3) covers the dwelling on an open-peril basis and personal property on a named-peril basis. It does not cover flood or earthquake damage.
When This Matters
Your homeowners policy covers fire damage to your house, theft of your belongings, liability if someone is injured on your property, and hotel costs if you must temporarily relocate.
Related Terms
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