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What Does Your Home Insurance Cover?

What Does Your Home Insurance Cover?

Discover why you need homeowners insurance, and learn more about what’s included in common insurance policies.

Whether you already own a property or are in the process of buying, you need homeowners insurance. It protects your home from all kinds of damages. Don’t forget: most lenders won’t issue a mortgage without proof of coverage.
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Read on for:

Your Home

Sometimes referred to as ‘Dwelling Coverage’, this aspect of homeowners insurance covers the physical structure of your home. This includes:

  • Foundation
  • Floors, Walls, and Ceilings
  • Roof
  • Mechanicals (Plumbing, Electrical, etc.)
  • Any other structural component of your home

The insurance covers the cost of rebuilding your home if it is damaged or destroyed by fires, hurricanes, or any other type of disaster listed in your policy.

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Your Personal Belongings

Homeowners insurance doesn’t just cover your home, it covers everything inside too – like furniture, clothes, and appliances. More expensive possessions like electronics, jewelry, and artwork are typically covered up to a certain amount. If you own a lot of expensive items, you can increase your levels of coverage for those items. Your possessions are insured against events like theft, fire, and other covered disasters

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Other Structures on Your Property

Many homeowners have additional structures on their property besides their main residence. These might include:

  • A Garage
  • A Guest House or Additional Dwelling Unit (ADU)
  • A Shed or Outhouse
  • Fences

Most home insurance policies cover these items – check your policy for specifics.

Liability for Injuries or Damages

Home insurance also protects homeowners against liabilities for injuries or damages suffered by others on their property. 

One example: a neighbor trips and falls on a broken step, and sues you for medical expenses and loss of earnings. Your homeowners insurance would cover all associated costs. 

Homeowners are typically covered for $100k – $500k in liabilities, depending on the level of coverage in their policy. Experts suggest you have at least $300k in coverage.

Other Coverages

Additional Living Expenses

Most policies cover living expenses if you have to move out of your home temporarily due to a covered disaster. Your insurance will cover the cost of a hotel room or temporary rental accommodation.

Personal Umbrella Coverage

This adds additional liability coverage to your homeowners policy. High net worth individuals with a lot of assets, or people who own liability-increasing assets like swimming pools, are good candidates for personal umbrella coverage.

Flood & Earthquake Insurance

These are NOT covered by traditional homeowners insurance policies. If you live in an area where either of these is a threat, you will need to purchase additional insurance coverage.

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What Does Your Home Insurance Cover?

Whether you’re purchasing a home or already own one, homeowners insurance is an absolute necessity. It protects you, and your property, against all kinds of threats. To learn more about homeowners insurance for your home, get in touch today!

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