When you purchase home insurance, it is important to understand how your insurance policy works. Home insurance is designed to provide you with lots of security for your home, even at the most standard level.

Basic #1: Medical Coverage

If someone is wounded on your property, they don't have to file a lawsuit against you in order to get their medical bills paid. You can submit a claim and get their medical bills paid, all the way up to your coverage limit. The coverage limit is pretty low with a basic policy; however, you can increase the coverage level.

For example, if someone trips and breaks their arm while at your home, your medical coverage would pay their medical bills without the need for them to file a lawsuit against you.

Basic #2: Personal Liability

If someone suffers a serious injury at your home or because of a family member, and they decide to pursue a lawsuit against you, this is where personal liability protection comes into play. Your personal liability protection will pay the lawyers as well as any settlement, up to your coverage ceiling.

For example, if a guest breaks their arm due to a fall at your home, and they decide to sue because the cost of their medical bills exceed your medical coverage limit, and they suffered a loss of income as well, your insurance will pay for an attorney and pay for any settlement.

Basic #3: Personal Property Coverage

Your home insurance policy doesn't just protect your home; it also protects all your personal items as well. If your personal items are taken or broken due to a natural event, you can get money to cover the cost of replacing these items.

It is important to keep in mind that personal property coverage has its limits. If you have any high-value items, you will need to add some special endorsements to your policy to cover these items.

Basic #4: Dwelling Coverage

One of the most important parts of home insurance coverage is dwelling coverage. Dwelling coverage is what covers the actual structure of your home.

If your actual home is damaged due to a windstorm, a hailstorm, a fire, or a lightning storm, your insurance will provide you with money to fix or replace your home. Dwelling coverage covers most natural damage, expect that type of damage caused by earthquakes and floods. You need special coverage for those types of natural disasters.

Your home insurance will cover your actual home and your personal property. Your home insurance will also cover someone's medical bills if they are injured on your property and provide you with legal protection if they decide to sue you over their injuries instead.

For more information, contact a local home insurance provider.