As a homeowner, you want to protect your financial investment. Homeowners insurance is designed to pay for damages to your home and your belongings. It also helps protect you from financial liability if someone is injured on your property.   How much homeowners insurance do I need? Ask yourself the following questions when deciding how much insurance you need: How much would it cost to replace my home today? You may need the help of a professional for an estimate — ask a real estate appraiser, builder, or your insurance agent. If you’ve made big improvements to your home, such as remodeling a kitchen or bathroom or building a deck, make sure your insurance policy is updated to reflect the increased value. Am I protected for inflation? Many companies automatically adjust policies for inflation; if so, your premiums would go up to cover the rising cost of replacement. Review your policy every year to see if your coverage limits are adequate. Am I planning any additions or renovations? Adding a family room or finishing a basement could increase the value of your home and the amount of coverage needed. Remember to inform your insurance company of any additions or renovations, otherwise you may not have enough coverage if you sustained a loss. Is my personal property covered? If you have valuable possessions, such as computers, cameras, jewelry, musical instruments, etc., you may want to buy optional coverage designed for these types of property and without any deductible.   What if someone got hurt on my property? If you or members of your household were hurt on your property, your medical expenses would typically be covered by your health insurance policy. They will not be covered by homeowners insurance. Homeowners insurance provides basic liability coverage that protects you and family members who are part of your household, if someone finds you legally responsible for injuries or damages, either on or off your property. You can be held legally liable for such events even though you didn’t intend for them to happen. Liability coverage includes the following: Legal defense costs Payments for first aid to others at the scene of an accident Payments for damage to someone else’s property caused by you or your family (e.g., your child hits a baseball through your neighbor’s window). Payments for reasonable expenses and for lost wages or salary up to the per day limit if you attend a hearing or trial at the request of your insurance company. Note that bodily injury and property damage generally are not covered while you are operating a motor vehicle, airplane, or boat. You need separate policies for these activities.   What questions should I ask about my...