What Does Homeowners Insurance Actually Cover?

A Homeowners Insurance Policy (also known as an HO-3 policy) can cover damage caused by instances such as house fire, windstorms, hail, lightning, and vandalism damages. Typically, damage caused by a flood or an earthquake is not covered by basic homeowner insurance policies. Unless you live in an area where this issue is prevalent, additional policy coverage is required. Optional homeowner insurance coverages and policies may be available to cover damage due to additional perils that may arise.

Types of Home Insurance Coverage

Within a Homeowners Insurance Policy, the following categories can help ensure your home and assets are adequately protected.

Dwelling Coverage

Dwelling coverage can pay to repair or rebuild your home if damaged by a covered cause of loss in your policy. You will likely want to buy enough dwelling coverage to cover the estimated cost to repair or rebuild home in the event of loss.

Other Structures Coverage

Other structures coverage can pay for covered damages to detached structures like garages, sheds and fences on your property. This Doesn't cover any structures not attached to your home regardless if it's an addition added on.

Personal Property Coverage

Personal property coverage can cover the personal items within your home that may be damaged or destroyed by a covered cause of loss, which could include your furniture, jewelry, sporting goods and electronics. Special limits of liability may apply to certain items.

Loss of Use Coverage

Loss of use coverage can pay your additional living expenses if you must relocate temporarily while your home is being restored following an incident. This item is subject to coverage terms and limits within your selected policy.

Personal Liability Coverage

Liability coverage can help protect you in the event of a claim against you and can provide a defense in the event of a lawsuit if you or a household member is responsible for causing bodily injury or property damage to others.

Home Insurance Deductibles and Limits

Your home insurance deductible is the amount of a covered claim that is your responsibility to pay in the event of an incident. The amount you choose for your insurance deductible depends on how much you're willing to pay if you have a covered loss.

Your home insurance coverage limits (the amount of homeowners insurance you buy) starts with your dwelling coverage. The limits of coverage for the other standard coverages in your homeowners' policy are typically calculated as percentages of your dwelling limit.

Learn more about Home Insurance Deductibles and Limits

Additional Homeowners Insurance Coverages

Special Personal Property Coverage

This special coverage for personal property or their contents can provide broader protection for your possessions in the event of a covered loss. It can cover your personal property in more situations than a homeowners policy can cover in the event of a loss.

Contents Replacement Cost

Content Replacement coverage provides for settlement of covered personal property losses based on the cost to replace the property at the time of loss, with no deduction for depreciation. The coverage is subject to applicable policy limits and deductibles and special limits apply to certain items such as jewelry, watches, and furs.

Additional Replacement Cost Protection Coverage

Additional replacement cost coverage can make available an additional amount to help repair or rebuild your home if the dwelling coverage on your home is not enough to cover the cost to repair or rebuild after a covered loss.

Jewelry and Valuable Items

Valuable Items Plus coverage can provide higher limits and expanded protection for special classes of property, like valuables such as jewelry, silverware, and furs.

Personal Articles Floater

A personal articles floater is a separate valuable items policy that is available should you need coverage in higher amounts than the coverage for specific valuable items listed in the policy.

Water Backup and Sump Pump Discharge or Overflow

Does Home insurance cover any water damage? If water backs up from a sewer or drain and into your home, or if water discharges or overflows from your sump pump, this coverage can help cover the loss up to a specified dollar amount. This policy doesn't include coverage for flood or surface water backup.

Identity Fraud

An identity fraud expense reimbursement coverage policy can provide upwards to $25,000 that can help cover any incurred expenses to assist in restoring your identity if in the event of fraudulent use.

Green Home Coverage

This green home coverage can provide additional protection that can help repair, replace or rebuild with environmental-friendly materials after a covered loss occurs.

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