Casualty insurance covers your dwelling and personal property. Also covered are other structures on the property such as garages and glasshouses. Trees and shrubs may also be covered up to a specific amount as laid out in your policy. Your home and possessions should be insured for replacement and not cash value. Consider the value of an item you have for two years. There will be a certain level of depreciation and thus the purchase price minus the depreciation may be the actual cash value. However, to replace the item may cost much more. Consider your home and the cost to actually rebuild it when purchasing homeowners insurance. It is advisable to insure to the replacement cost.

You are probably thinking that something disastrous will never happen to you or your property. Look in the papers or watch the TV any day and you will find stories of people who thought exactly the same thing. Forest Fires destroyed property and homes. Tornados swept through towns and destroyed whole neighborhoods. Think of that time your old friends visited from out of town and one of them had too much beer. He attempted to tango on your living room floor and sprained his ankle. How will you be able to pay for repairs or refurbishment to your home and for medical bills in the event somebody is injured in your home? Insurance is the answer and the level and type of coverage you choose determines how much, if anything, you will receive in the event an accident or disaster occurs

You are legally bound to have a certain coverage level of homeowners insurance. You can choose to purchase more and add to the types of coverage. Examples are flood and earthquake coverage, which are generally not standard in a policy; however, you can choose to have these options included in your policy. Your insurance generally includes protection for your property anywhere in the world. Your premium will be increased to reflect any extra options you choose. However, there are the eleven common perils, which most homeowners’ Insurance package policies cover. This is commonly known as the HO -1 policy and is the least expensive.