Homeowners insurance provides financial protection in the event that your home or its contents are damaged. It also provides protection if you or a family member are held legally responsible (liable) for the injuries to others or damage to their property. It's also required by most mortgage lenders. There are different types of insurance policies that cover your home. They range from a basic policy, to those that will provide a much broader range of protection.

Auto insurance protects you against financial loss if you have an accident. It is a contract between you and the insurance company. You agree to pay the premium and the insurance company agrees to pay your losses as defined in your policy. Auto insurance provides property, liability and medical coverage:

• Property coverage pays for damage to or theft of your car.
• Liability coverage pays for your legal responsibility to others for bodily injury or property damage.
• Medical coverage pays for the cost of treating injuries, rehabilitation and sometimes lost wages and funeral expenses.

Comprehensive coverage for cherished possessions. From jewelry to collectibles, you probably have more valuables than you realize. And your homeowners policy may not cover their full value. Your peace of mind is worth it.

An umbrella policy provides extra liability insurance coverage that goes beyond the limits of your home, auto or watercraft insurance. It provides an additional layer of security for being sued for damages to other people's property or injuries caused to others in an accident. It also protects against libel, vandalism, slander and invasion of privacy. An umbrella insurance policy is the additional coverage you need if you are sued and the dollar limit of the original policy has been exhausted. The added coverage provided by liability insurance is most useful to individuals who own a lot of assets or very expensive assets and are at significant risk for being sued.

Renters insurance, often called tenants insurance, is an insurance policy that provides most of the benefits of homeowners insurance. Renters insurance does not include coverage for the dwelling, or structure, with the exception of small alterations that a tenant makes to the structure. This provides liability insurance. The tenant's personal property is covered against named perils such as fire, theft, and vandalism. The owner of the building is responsible for insuring the structure but bears no responsibility for the tenant's belongings.

A condo policy is like a regular homeowner's policy, but for a condominium unit, and with a lot more extras. Condo insurance policies cover the interior of the unit and personal property inside–commonly known as “studs in” or “walls in” coverage. Condominium insurance designed specifically for condo or co-op owners. Condominium policies help protect your personal property and the interior of your unit. You will also have liability protection for bodily injury or property damage to others.

Your homeowners policy does not provide coverage for a flood. The National Flood Ins Program has established a legal definition for a flood as follows:

A flood is a general and temporary condition where two or more acres of normally dry land or two or more properties are inundated by water or mud flow.

Anywhere it rains it can flood. Many conditions can result in flood: hurricanes, broken levees, outdated or clogged drainage systems and rapid accumulations of rainfall.

Watercraft insurance policies provide coverage for boats and personal watercraft. This type of insurance may be purchased for sailboats, house boats, and pontoon boats, as well as other watercraft up to a certain size and value. Watercraft liability coverage in a standard boat insurance policy generally covers you in two ways:

• Bodily Injury: It can help protect you from paying out of pocket for medical bills and other related costs — like loss of income — when someone is injured in an accident that you caused.
• Property Damage: It can help cover the costs of repairing or replacing another person’s boat or property when you damage it in an accident. This type of coverage typically kicks in after a collision, but it can also help in other scenarios: for instance, if you have an accidental fuel spill that damages someone’s property.

Watercraft insurance often includes towing and wreckage removal, as well as fuel spill indemnification.

Recreational vehicles are defined as the following: All terrain vehicles, dune buggies, golf carts, mini-bikes, motor homes, motorcycles, recreational vehicle trailers, snowmobiles, trail-bikes, off-road vehicles, antique and classic autos, and various watercraft including jet skis.

Most recreational vehicles are NOT covered by your Homeowners policy. Many people think that it’s covered under their Homeowners policy because it’s considered personal property. But, actually you need to have a separate policy or an endorsement to your current Homeowners policy to cover it with most insurance companies.