When you have tangible assets, you need the protection of a homeowners insurance policy. These policies cover the homeowners. Whether in a house or an apartment, a well-written homeowners’ policy will pay to replace any of your personal properties that are destroyed in a fire accident or any 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 named peril 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 on you, in the event of a loss.