What Does Home Insurance Cover?

Hands shielding roof of illustrated house from rain

Insurance is a crucial part of being a homeowner. In fact, most mortgage lenders require that buyers carry a homeowner’s insurance policy. While policies may vary, there are certain items and events that are typically covered in many policies.

Typically covered:

  • Dwelling Coverage

    Dwelling coverage includes the actual structure of the home. This means walls, flooring, doors, etc.

  • Other Structures

    This protects structures not physically attached to your home such as an unattached garage or shed.

  • Personal Liability

    Homeowner’s insurance covers the physical home, but also may protect the homeowner from financial and legal ramifications if a non-family member is injured while in the home or on the property. For example, liability insurance could cover medical costs for a non-family member injured in the home.

  • Personal Property

    Personal property coverage typically includes (within limits) items such as electronics, furniture and valuables that are not part of the actual structure of the home, but could become damaged.

  • Additional Living Expense

    Homeowner’s insurance will often help cover costs if you are unable to live in your home for a period of time due to repairs following a covered loss.

What is not covered by homeowner’s insurance?

  • Any damage that was intentionally caused to the home or another person
  • Ownership of a motor vehicle (American Home Insurance Agency, Inc® can bundle automobile, home and other types of insurance for a potential additional savings)
  • Business services operated out of the home

Important to consider:

  • Cause of Loss

    The fact that a home is damaged does not guarantee that a claim will be fulfilled; the cause of the damage is essential in determining if the loss will be covered. Whether the cause of damage is covered under a standard policy varies in different parts of the country based in part on the climate and potential situations such as weather and other events that are common in the area. Weather losses can include storms, fire, wind, hail, lightning, ice or snow. Non-weather causes of loss may include theft, vandalism, aircraft and vehicles. Sudden or accidental losses may include water from plumbing and expanding/tearing of heating or cooling systems.

Choosing a home insurance policy is simpler with assistance. Our affiliate, American Home Insurance Agency, Inc.® can help answer questions about home insurance. Insurance policies are subject to various limitations and exclusions.

Sources: Travelers, State Farm® and Insurance Information Institute.