What is covered in my homeowner's policy? Why do I need more coverage?

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.

In most policies, your personal belongings are covered anywhere in the world, but some companies limit this amount.

Expensive items like jewelry, guns, art, and furs are covered but there is usually a dollar limit if they are stolen. Generally, you are only covered between $1,000 and $2,000 for these items.

To insure these items for their full value, you should purchase a special personal property endorsement or floater which allows you to insure these items at their appraised value.