If you have tangible assets, you need the protection of a homeowners insurance policy. These policies cover you in a home or an
apartment, whether you are an owner or a renter. A well-written homeowners policy will pay to replace any of your personal
property that is destroyed in a fire or other disaster. The policy will also be your first line of defense against a lawsuit from
someone injured at your home.
The cost of this coverage is determined by many rating factors. The quality of the coverage, however, is determined by the
quality of the insurer and whether the policy is written on a named perils or all-risk basis. A named-perils policy covers only those
losses specifically cited in the contract. The all-risk policy works the opposite way — unless a peril is specifically excluded,
coverage is provided. The all-risk policy is broader and the burden of proof is on the carrier, not you, in the event of a loss.