Buying a dream home is probably one of the biggest lifetime investments, so it becomes necessary to protect the investment from unlikely disasters and unpredictable events such as earthquake, volcanic eruption, fire or wind.
Homeowner’s insurance safeguards your property against losses as well as injuries that might occur to the 3rd party in case of a disaster.

Although it is not mandatory to purchase this insurance but, mortgage companies need this insurance for sanctioning mortgage. Here are the standard benefits of homeowner’s insurance coverage:

• Structural Damage to the Property:
  It pays the repair amount or the rebuild cost for the damage to the property caused due to the disasters according the listed policies. Earthquake and floods are not covered, but can be purchased additionally with this insurance. Don’t count the rate of the land or the building cost while deciding the insurance amount; instead calculate the amount you will need to rebuild the home in case of damage. Your insurance agent or realtors or building associations can better help you in calculating that home insurance amount.
• Additional Living Expenses:
  When your home is being re-built or repaired, your hotel bills, restaurant bills and other miscellaneous bills are covered.
• Liability:
  It covers the finances for third party injury or property damage caused during the disaster. It also covers the court costs if any and normally covers $100,000, but experts recommend that the amount should be more than that, at least three times greater. If you check the umbrella policies, then you could get higher compensation limits and broader liability coverage.
• Loss of Personal Items:
  It covers the personal property, where you can get re-imbursement up to 70% for your clothes, furniture and keepsakes that are damaged or stolen when the disaster took place. You can also record a video of your personal belongings and keep it off the premises, so that your work becomes easy when the disaster takes place.