Your home, as one of your most valuable financial assets, needs to be adequately protected. A typical homeowner’s policy protects your building, the personal property you own, an adjoining garage, against fire, vandalism, theft and any other direct physical loss. A homeowner’s policy also protects against lawsuits when you purchase personal liability coverage. The amount of coverage you carry has to correspond closely to the replacement cost value of your home. If you live in flood prone areas, it’s important to remember that a homeowner’s policy does not provide flood coverage. A flood policy has to be purchased separately.