It is important to understand that every homeowners insurance policy is different. This makes it difficult to answer the question “What does homeowners insurance cover?” with a one-size-fits-all answer. There are some things, though, that the average homeowner’s policy will include in the coverage available and a few things you should expect from your homeowner’s policy.
Major Coverages from a Basic Home Insurance Policy
According to Insurance Information Institute, there are four specific types of coverage the average homeowner’s insurance policy provides:
- Protection for your home’s structure.
- Protection for your possessions or personal belongings (high value items may need additional protection discuss your valuables with your agent when buying home insurance).
- Liability protection.
- Living expenses while your home is being rebuilt due to a covered event.
Within these general categories there are many variations to consider and not all policies are created the same. It’s important to understand exactly how much coverage you have (or what your coverage limits may be) for these things and what exclusions might impact you.
What are Covered Events?
The key to understanding many of the limits of your homeowners insurance policy lies in understanding what events or disasters your policy covers. For the most part, homeowner’s insurance will cover these types of events:
- Aircraft Damage
- Damage Related to Weight of Snow, Sleet, or Ice
- Explosions
- Falling Objects
- Fire
- Hail
- Lightning
- Smoke Damage
- Theft
- Vandalism
- Vehicle Damage
- Wind
This is a broad range of events to cover, however, it is not all inclusive and there are some very specific events or types of damage that are excluded from most homeowner’s insurance policies.
Common Homeowner’s Coverage Exclusions
The events or situations listed below are quite commonly excluded from the average homeowner’s insurance policy and you will need specific plans to provide protection from these events.
- Acts of Terror
- Deterioration
- Earthquake
- Flood
- Mold
- Sewage Backup
- Sinkholes
- Termites
There are other events that may be specifically excluded or simply not included in coverage as well. If you have specific concerns, make sure you discuss them with your insurance agent to make sure you have the right kind of coverage to offer you peace of mind.
The purpose of homeowners insurance is to save you from financial peril when certain events take place. More than that, it protects your investment in your home and all the things that help make it a home for your family.
Make sure you have the right amount and type of coverage to do just that. And work with your independent insurance agency to re-evaluate your coverage annually to make sure it’s keeping up with the value of your home and your prized possessions.
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