For many people, their homes are their single most valuable investment. When you factor in the value of the contents of a home, a disaster like a fire can literally destroy a family’s entire financial stability if the home and its contents are not properly insured. However, homeowners insurance protects people from more than personal loss; it also protects homeowners from liability that can occur due to accidents in or near your home. If a guest is injured in your home, they may bring suit to recover for their injuries. In fact, they may bring suit even if they would not choose to do so because their health insurance companies may seek compensation from your homeowners’ insurance company to pay for medical bills associated with those injuries. Understanding that homeowners insurance protects you from loss and from liability is an important factor to consider when examining coverage limits, deductibles, and policy exclusions. It is also a great idea to revisit your policy limits on an annual basis. Rising home costs and rising costs for construction materials can change the replacement value of your home. Moreover, as people age the contents of their home tend to become more valuable, and coverage limits that would have been adequate to replace contents years ago may no longer be sufficient to cover your needs.