Homeowners insurance can be confusing. Part 2.

A standard homeowner's policy includes 4 types of coverage.
- Coverage for the structure of your home.
- Coverage for your personal belongings.
- Liability protection in case someone is injured on your property.
- Additional living expenses in the event you are temporarily unable to live in your home due to fire or other insured disaster.

Your homeowner's policy also provides no-fault medical coverage. So let's say a friend or neighbor is injured in your home or front yard, he or she can simply submit medical bills to your insurance company. This way, bills are paid without a liability claim being filed against you. This does not pay medical bills for you, your family or pet.

Your homeowner's policy also pays the additional cost of living when you have to reside somewhere other than your home due to damage from fire, storm, or other insured disaster. It typically covers hotel bills, restaurant meals and other expenses over and above your normal living expenses while your home is being rebuilt. Of course there are dollar limits and some policies have time limitations as well.