What's Covered Under Homeowners Insurance?

Protecting your home with homeowners insurance is not only necessary to get a mortgage, but it makes sound financial sense to cover your most valuable asset. You will know what to expect from your insurance provider, should disaster strike, when you understand the details of your policy. To ensure that you have sufficient protection, make time to read your policy carefully if appropriate and also include coverage.


Standard homeowners insurance provides personal liability coverage and protects your home. Certain all-natural disasters aren’t covered under a normal HO-3 policy. Homeowner policies comprise HO-2 and HO-1, which cover fewer risks. HO-4 policies are designed for tenants, and condominium owners are covered by H-6 insurance.

What Is Covered

An average homeowners insurance policy covers your home and personal property against damage from fire, lightning, tornadoes and hurricanes. HO-3 insurance covers losses due to theft, riot and vandalism, in addition to damage due to frozen plumbing, heating and air conditioning systems. Conventional HO-3 policies cover jewelry for between $1,000 and $2,000. Some items and circumstances, specifically excluded in your policy, are exempt from insurance protection. It’s often wise to buy additional floater coverage for high-value artwork and other personal possessions.

What Is Not Covered

The two most commonly excluded disasters are floods and earthquakes, largely because the risk to insurers is so significant. The vast majority of states in the country are believed to be earthquake-prone, and floods can cause extreme and costly damage. Based on your geographical area, the cost of adding flood and earthquake coverage will be different. Other excluded events include intentional reduction, power failure and harms brought on by acts of warfare.

Liability Coverage

Personal liability coverage protects against a lawsuit caused by bodily injury or property damage to others. The coverage excludes auto and business-related accidents. Medical costs to the injured party are usually coated, but not for yourself, your family members or for injuries associated with a business conducted out of your home.


There’s a difference between guaranteed-replacement-cost coverage and actual-cash-value coverage. Replacement coverage is more expensive, but it covers the current cost to replace damaged goods. This makes a significant difference when it comes to replacing costly products. As an example, if you lose an appliance that cost $250 to purchase twenty years back that today costs $1,000 to substitute, guaranteed-replacement insurance will cover it. Actual price coverage considers depreciation and only covers some of the replacement price.

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