 TITLE: Step-by-Step Checklist for Buying Home Insurance CONTENT: Know What Homeowners Insurance Covers—and Doesn't\n-------------------------------------------------\nIt's important to understand what homeowners insurance covers—and what it doesn't. Standard policies generally include the following types of coverage.\n*   **Liability protection\/no-fault medical coverage** pays for legal costs and medical care if a visitor is hurt on your property; it also covers damages your family members cause to another person or their property.\n*   **Dwelling coverage** pays repair or rebuilding costs if your home is damaged or destroyed by a covered peril.\n    *   Covered perils usually include fire or smoke, wind (including hurricanes and tornadoes), hail or lightning, vandalism, theft and certain types of water damage.\n    *   Additional structures, such as garages and fences, are usually covered as well.\n*   **Personal property coverage** pays to replace contents of your house that are stolen or damaged by a covered incident. It may also cover personal possessions outside the home, such as in your car or storage space.\n*   **Loss of use\/additional living expenses (ALE)** covers the cost of living elsewhere while your home is being rebuilt or repaired, including rent, hotel costs and meals.\nHomeowners insurance generally doesn't cover damage from floods, earthquakes, sinkholes or water damage from backed-up sewers, septic tanks, sump pumps or drains. END