What Does Homeowners Insurance Cover?

Homeowners insurance is a crucial part of protecting your investment in your home. Understanding what is covered can help you ensure that you have the right policy in place. Here’s a comprehensive look at what homeowners insurance typically covers:

1. Dwelling Coverage

Dwelling coverage pays for repairs or rebuilding of the physical structure of your home if it's damaged by a covered peril. This includes the walls, roof, floors, and built-in appliances. Typical covered perils include:

• Fire or smoke
• Windstorms and hail
• Lightning strikes
• Vandalism and malicious mischief
• Damage from the weight of snow or ice

2. Other Structures Coverage

This part of your policy covers damage to structures on your property that are not attached to your home, such as:

• Detached garages
• Sheds
• Fences
• Gazebos

3. Personal Property Coverage

Personal property coverage helps pay for the replacement or repair of your belongings if they are damaged, stolen, or destroyed. This includes items such as:

• Furniture
• Electronics
• Clothing
• Jewelry (usually up to a certain limit)

Policies typically cover personal property up to 50-70% of the dwelling coverage amount.

4. Liability Protection

Liability coverage protects you against lawsuits for bodily injury or property damage that you or family members cause to other people. It also pays for damage caused by your pets. Typical coverage amounts range from $100,000 to $500,000.

5. Additional Living Expenses (ALE)

Additional Living Expenses (ALE) coverage pays for the extra costs of living away from home if you cannot live in your home due to a covered loss. This includes:

• Hotel bills
• Restaurant meals
• Other living expenses

6. Medical Payments Coverage

This coverage pays for medical expenses for guests who are injured on your property, regardless of fault. Typical limits are between $1,000 and $5,000.

What Homeowners Insurance Does Not Cover

While homeowners insurance covers many types of damage, there are some common exclusions:

• Flood damage (you need a separate flood insurance policy)
• Earthquake damage (you need a separate earthquake insurance policy)
• Wear and tear or maintenance issues
• Damage from pests such as termites
• Acts of war

Optional Coverages

Depending on your needs, you may want to consider adding optional coverages to your policy, such as:

• Water backup coverage
• Extended or guaranteed replacement cost coverage
• Scheduled personal property coverage for high-value items

For more detailed information on homeowners insurance and to compare policies, visit the National Association of Insurance Commissioners (NAIC).