Homeowners insurance gives you more than just peace of mind. It provides financial protection against damage to your home and property, as well as legal protection for you and your family if they are held liable for injuries to others while in your home. For these reasons, it is usually required by most mortgage lenders.
But what exactly does home insurance cover? The answer can vary depending on your policy, and where you live. However, to give our readers a general idea, we’ve compiled the following list of what is most commonly covered by homeowners insurance.
Damage caused by severe weather
Most homeowners insurance policies will cover damage caused by windstorms, hail, lightning, etc. HOWEVER, floods and earthquakes are typically NOT covered in a standard/basic policy. You may be required to buy supplemental insurance for floods and earthquakes if you live in an area that is prone to these events.
Theft and vandalism
A lot of policies will cover any damage caused by vandalism as well as reimburse homeowners for stolen property. The limits of reimbursement, deductibles, etc. will likley vary by policy.
Most standard policies will pay to repair or rebuild the “dwelling” which is the actual home. This could include any number of repairs/replacements including electrical wiring, plumbing, and HVAC.
Other structure coverage
This refers to other structures not permanently attached to the dwelling unit. Examples may be a detached garage, workshop, shed, fences, playhouse, doghouse, chicken coop, etc.
Personal property coverage
This covers the cost to replace or repair your personal belongings that were damaged or destroyed by a covered cause. Examples include furniture, clothing, electronics, etc.
Loss of use coverage
This helps pay for temporary housing and living expenses if you are unable to live in your home while it is being restored.
If someone is injured on your property or if their property is damaged, liability coverage helps protect you and your assets. In the event of a lawsuit, the liability coverage will help cover your legal defense costs.
There are numerous additional coverage options available that can be added to your homeowners insurance policy. Talk to a qualified homeowners insurance expert to find the right type of coverage for you and your home.