Homeowners Insurance: What is Covered

As a homeowner, one of the most important investments you can make is getting homeowners insurance. This insurance policy protects your home and its contents in case of damage, loss or theft. But what exactly is covered by homeowners insurance? This article will go over everything you need to know about what is covered by your policy.

What Does Homeowners Insurance Cover?

Your homeowners insurance policy covers several different areas:

Dwelling Coverage

Dwelling coverage is the most basic coverage provided by homeowners insurance. It protects the structure of your home and any attached structures such as garages, porches or decks. Your insurance policy will cover the cost of repairing or rebuilding your home if it’s damaged by a covered peril.

Common perils that are covered include:

• Fire
• Lightning
• Windstorm
• Hail
• Hurricane
• Explosion
• Smoke damage
• Vandalism
• Theft

However, there are also perils that are not covered by homeowners insurance, such as flooding or earthquakes. If you live in an area prone to these natural disasters, you may need to purchase additional coverage.

In addition to the cost of rebuilding your home, your dwelling coverage also includes any additional structures on your property such as a fence or shed.

Personal Property Coverage

Personal property coverage protects your belongings inside your home. This includes everything from furniture and electronics to clothing and jewelry.

Your personal property is covered for the same perils as your dwelling coverage, but there may be some limits on specific items. For example, your policy may only cover up to a certain amount for jewelry or art.

If you have expensive items that exceed the limit of your personal property coverage, you may need to purchase additional floaters or endorsements to fully protect them.

Liability Coverage

Liability coverage protects you if someone gets injured on your property or if you cause damage to someone else’s property.

For example, if someone slips and falls on your icy sidewalk and sues you, your liability coverage will pay for their medical expenses and any legal fees associated with the lawsuit.

Liability coverage also covers any damages you cause to someone else’s property. For example, if you accidentally hit a neighbor’s garage with your car, your liability coverage would pay for the repair costs.

Additional Living Expenses Coverage

If your home is deemed uninhabitable due to damage from a covered peril, your insurance will cover the cost of temporary living expenses such as hotel or rental costs, meals, and other expenses until your home is repaired or rebuilt.

This coverage is meant to ensure that you and your family are taken care of in the event of a disaster.

FAQ

Does homeowners insurance cover flood damage?

Most homeowners insurance policies do not cover damage caused by flooding. You may need to purchase a separate flood insurance policy to be fully protected from flood damage.

Will my policy cover mold damage?

Most homeowners insurance policies do not cover mold damage if it is a result of a preventable water leak. However, if the mold is caused by a covered peril such as a burst pipe, then it may be covered.

What happens if my personal property is stolen?

If your personal property is stolen, you should file a police report and then contact your insurance company. Your insurance policy will cover the cost of replacing the stolen items up to your policy limit.

Does homeowners insurance cover roof repairs?

Roof repairs are typically covered by your homeowners insurance policy as long as the damage is caused by a covered peril.

Do I need to purchase separate insurance for my home office?

If you have a home office, your personal property coverage should cover any office equipment such as computers and printers. However, if you have clients or employees coming to your home office, you may need to purchase additional liability coverage.

Conclusion

Homeowners insurance is an important investment that protects your home and belongings from damage, loss or theft. Understanding what is covered by your policy is essential to ensure that you have the right coverage for your needs. By knowing what is covered and what is not covered, you can make informed decisions about your insurance policy and have peace of mind knowing that you’re protected.