What Does Homeowner’s Insurance Cover?

whatdoeshomeownersinsurancecover-720Homeowner’s insurance is a necessity for all homeowners; in fact, you may not even be able to close on your home without it! Insurance protects our home and belongings against natural disasters, burglaries, and more; however, many homeowners are often confused when it comes to the specifics of their policies.

While the specific coverage differs from policy to policy, there are a number of things that all homeowner’s insurance covers. The following is a guide to what your homeowner’s insurance covers, what it protects against, and where you may need supplemental coverage.

What it covers

Homeowner’s insurance can be catered to each individual home and family, but there are four areas it typically covers: your home, other structures on your property, the personal property within your home, and liability.

  1. Dwelling protection. Dwelling protection covers your home itself, including structures attached to it such as the garage or deck. This will help pay for the costs to repair or rebuild your home in the event of natural disaster such as tornado, fire, severe storm, and more. There are several types of natural disasters that are typically not included in standard homeowner’s insurance including earthquakes and floods. If your home is in an area where these are common, additional insurance may be necessary.
  2. Other structure protection. Other structure protection includes sheds, outbuildings, fences, and detached garages.
  3. Personal property. Most homeowner’s insurance policies cover at least some of the personal property within your home. This would help cover the cost of replacements in the event of theft or natural disaster.
  4. Liability. Liability insurance for home covers any injuries to non-residents. If a friend slips and falls on the porch and breaks their hip, for example, bodily injury liability can help cover any medical or legal expenses that result from an accident.

Finding the right policy

It’s important that potential buyers – and current homeowners – shop around before committing to a homeowner’s insurance policy. The policy should be tailored to take into account your home and belongings. Homeowners with the right insurance can rest easy with peace of mind that they have the right insurance and know what it covers.

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