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What Does Homeowners Insurance Cover (All You Need To Know)

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Let me explain what’s covered under standard homeowners insurance!

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What Does Homeowners Insurance Cover

Homeowners insurance is a type of insurance policy composed of different coverages protecting homeowners from covered perils or risks leading to financial losses or damages.

Your standard homeowners’ policy will provide the following main protections:

  • Dwelling protection
  • Other structures protection
  • Personal property protection
  • Personal liability protection
  • Living expenses 

Let’s look at the main coverages under your homeowners’ insurance policy in more detail.

Dwelling Coverage

The primary reason why you will want to purchase homeowners insurance is to protect your home or dwelling.

The dwelling protection offers you insurance coverage to protect the structure of your home, such as:

  • Your home’s foundation
  • The walls 
  • Your property roof 
  • Your garage
  • Your deck

Other Structures Coverage

The other structure protection is another coverage in your homeowners’ insurance policy protecting the other structures of your property from damage, such as:

  • A detached garage
  • Your property fence
  • A tool shed 
  • Barn 
  • Sheet 
  • Swing sets
  • Outdoor grills 
  • Fireplaces 

Personal Property Coverage

Included in your homeowners’ policy, you will also find personal property coverage.

Personal property coverage is a type of converge protecting your personal belongings and movable items within your home, such as:

  • Electronics
  • Furniture
  • Appliances
  • Clothes 

Should your covered personal property be damaged or lost as a result of a covered peril, then you will have your insurance company pay for your loss.

It’s important that you look at your personal property coverage to see what’s covered as not all your personal property will be protected such as jewelry, fur clothing, watches, or others.

You can still purchase additional coverage to protect excluded items from your standard home policy.

Personal Liability Coverage

Another common coverage you will find included as part of your homeowners’ insurance policy is liability coverage.

Liability coverage is a type of coverage protecting you from legal liability caused to someone else, such as:

  • Legal expenses and costs if you were found liable to pay damages to someone who suffered damages on your property 
  • Medical expenses caused to someone who got injured on your property

If you need more liability protection coverage, you can purchase a personal umbrella policy to get more protection.

Living Expenses

In most cases, you are also insured for your living expenses if you are forced out of your home and need to find another place to live until your home is rebuilt or repaired should it be damaged by a covered risk.

In other words, if you end up paying for a hotel or alternate lodging for six months until your home was rebuilt, that cost will be covered by your homeowner’s insurance policy.

Medical Payments

Another coverage found in many standard house insurance policies is medical payment coverage.

The medical payment coverage helps pay for someone’s medical bills if they are hurt on your property regardless of who was at fault.

This coverage extends to damages caused by your other family members or home animals like a dog.

What Does Homeowners Insurance Not Cover

Although there are many types of damages that may be covered by your homeowners’ policy, it’s important to note that it does not give you protection against everything.

In most cases, your homeowners’ policy will not cover you for damages caused by:

  • Earthquakes
  • Floods 

Also, your standard homeowner’s insurance will not cover you for the following damates:

  • Loss of expensive personal goods like jewelry 
  • Collectibles
  • Identify theft 

For example, if you live in an area prone to flooding, you will need to purchase additional insurance protection as your home or content damaged by flood will not ordinarily be covered.

Should you need coverage for risks not covered by your home insurance policy, you can speak to your insurance provider or broker to purchase additional coverage.

Frequently Asked Questions

Let’s look at the most common questions asked related to the question what does homeowners insurance cover.

What Is Homeowners Insurance

A homeowners insurance policy is a type of insurance policy giving you financial protection against damages caused to your home, other structures on your property, your personal belongings, and personal liability.

Your home insurance has three main purposes:

  • Help you repair your house and other structures on your property
  • Help you repair or replace your personal goods 
  • Help cover you from legal liability if you are held liable for someone’s injuries or losses 

Is Homeowners Insurance Necessary

In practice, we can say that a home insurance is a necessity as it’s one of the most important conditions imposed by mortgage lenders when financing the purchase of a property.

Technically, a home owner who does not have any financing on a property does not need to have an insurance policy by law and can personally take the risk.

However, in most cases, most property owners will get homeowners insurance as a potential loss or repair to a house can potentially be quite costly (the insurance is worth it for the peace of mind it offers).

What Is A Homeowners Insurance Coverage Limit

Every insurance policy has a coverage limit and the same is true with all homeowners insurance policies.

Your homeowner insurance policy limit is the maximum amount of money that your insurance provider will pay for a covered loss or damage.

If you suffered damages beyond your coverage limit, you will not receive any further compensation from your insurance company.

What Is A Homeowners Insurance Deductible

A homeowners insurance deductible is an amount of money that you must pay to your insurance provider before they cover your loss.

In other words, you can only access the benefits or coverages under your policy by filing a claim for a loss and paying your homeowner’s insurance deductible.

How Much Does Homeowners Insurance Cost

Unfortunately, there’s no specific formula that we can use to precisely calculate how much you will need to pay in homeowners insurance premiums.

Every home owner will possibly have a different insurance premium to pay as the costs is calculated based on a number of factors, such as:

  • The location of your home
  • Your home value
  • Your coverage limits
  • Your chosen deductible
  • Your age
  • Your past claims history
  • The value of your personal property

And more…

What Are The Main Risks Covered By A Homeowners’ Policy

Although you will need to look at the terms and conditions of your homeowners’ policy to assess what’s covered specifically for your policy, standard homeowners policies will cover damages caused by:

  • Fire 
  • Smoke 
  • Lightning 
  • Windstorms 
  • Hail
  • Theft
  • Vandalism 
  • Damage from aircraft 
  • Falling objects
  • Weight of ice, snow, or sleet
  • Freezing household pipes and systems
  • Damage from power surge or short-circuits 

What Type of Damages Are Covered By My Homeowners’ Insurance

You should look at the specific terms of your policy to see what type of protection you have in your homeowners’ policy and what type of damages are covered.

Here are some common damages covered by your homeowners’ policy:

  • All home insurance policies cover damages caused by fire and smoke 
  • Theft is a very common coverage in your home insurance policy 
  • Water damage caused by something within the home like a broken pipe or appliances 
  • Roof leaks caused by a covered risk such as hail or storm
  • Damages caused by dog bites are generally covered under your personal liability coverage 
  • The cost to remove a fallen tree will be covered if it was caused by a covered risk like a storm
  • Your home air conditioning system is generally covered if the damage was caused by a covered peril 
  • Roof repair is covered if the damage was caused by a covered risk
  • Your fence is covered if the damage was caused by a covered risk 

Let’s look at some common damages and see if they are covered or not?

  • Mold damage is generally not covered
  • Roof leaks caused by lack of maintenance 
  • Water damages caused by an event outside the house like flooding
  • Water damage caused by a slow leak over time is usually not covered or due to improper maintenance 
  • Termite damage is not covered as it’s considered to be caused by lack of proper maintenance 
  • The cost to remove a fallen tree that did not cause damages or was unhealthy is not covered 
  • Roof repair will not be covered if the damage is due to normal wear and tear or lack of proper maintenance of the roof 

What Does Home Insurance Cover Takeaways 

So there you have it folks!

What does house insurance cover in simple terms?

Typically, a standard homeowners insurance will cover you to repair or replace your home and your personal content should they be damaged or lost.

Your home insurance policy is composed of different types of coverages that give you overall financial protection as a home owner, including:

  • Insurance for your home structure (like your walls and roof)
  • Insurance for other structures found on your property (like a detached garage)
  • Insurance for your personal things inside the home (like electronics and appliances)
  • Insurance for your personal liability (if someone is hurt or suffers a loss on your property)

Be careful to note that standard policies will not cover you for certain types of risks or certain types of property, such as:

  • Damages caused by floods or earthquakes
  • Damages caused by identify theft 
  • Valuable jewelry, artwork, or collectibles

If you need protection for excluded risks or excluded property, you will need to purchase additional coverages to give you further protection.

Let’s look at a summary of our findings.

What Does Homeowners Insurance Cover Summary

  • A homeowners insurance, or home insurance, is a type of insurance coverage that homeowners take to cover the full value of their property or its fair value against covered perils
  • Most insurance providers provide you coverage for damages to the inside or outside of your home caused by an insured event like fire, storm, theft, or vandalism 
  • You will also get personal liability coverage for damages or injuries caused to others or lawsuits filed against you as a homeowner 
  • Most home insurance providers will not provide you any coverage for damages to your home caused by an earthquake, flooding, or other natural disasters or “Acts of God”
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