What Does Home Insurance Cover?

Homeownership is a significant investment that brings both comfort and responsibility. Protecting your home and belongings from unexpected events is crucial, which is where home insurance comes into play. Home insurance is a financial safety net that covers potential risks and damages to your property. 

What Can a Home Insurance Policy Cover? 
The following are some common areas that homeowners insurance policies typically cover: 

• Dwelling coverage may help cover the structure of your home itself, including the walls, roof, foundation and other built-in structures, in case of damage or destruction caused by covered perils.
• Other structures coverage helps provide insurance for additional structures on your property that are not physically connected to your primary dwelling. These may include detached garages, sheds, fences and other standalone structures.
• Personal property coverage may help cover your personal belongings, including furniture, appliances, clothing, electronics and other items, in case of damage, theft or loss.
• Liability coverage may help provide protection if someone is injured on your property or if you cause damage to someone else’s property. It may cover medical expenses, legal fees and potential lawsuits up to the policy’s limit.
• Additional living expenses may help cover the costs of temporary accommodations, meals and other essential living expenses incurred while your residence is temporarily uninhabitable.

In addition to the basic coverages mentioned above, you can often customize your home insurance policy by adding additional policies or endorsements. Some common options include the following: 

• Flood insurance may help cover losses stemming from specific types of water damage to your home and personal belongings.
• Earthquake insurance may cover damage caused by earthquakes, another peril usually excluded from standard policies.
• Sewer backup coverage may help cover the damage resulting from sewer or drain backups. 

• Rebuilding costs
• Uncommon features that would be difficult to replace or repair
• Liability insurance needs 
• Home’s age
• Additional structures on your property
• Value of your belongings
• Vulnerability of your residence to weather-related incidents (e.g., floods or hurricanes) 

This blog is intended for informational and educational use only. It is not exhaustive and should not be construed as legal advice. Please contact your insurance professional for further information.