As a homeowner, one of the most important aspects of your home isn’t something you use daily. And it isn’t something flashy you show off to friends. It’s your homeowners insurance policy, and it protects you in more ways than you may think, helping you rebuild your home or repair damage that results from a covered loss.
But, that’s not all. It can also help cover the costs of a lawsuit, help you pay for somewhere else to live when your home is uninhabitable, and much more. Home insurance is typically very comprehensive, but all policies have exclusions and coverage limits. It’s vital to know what those are so you know what’s covered and what’s not. Fire damage? Typically covered. Flood damage? Typically not. With this guide, you can begin to understand what a typical home insurance policy covers. Just keep in mind that coverage varies from carrier to carrier, region to region and even policy to policy. Only your individual home policy can tell you the coverage you have and that which you don’t. For an even better understanding of your home policy coverage, review it with one of our agents. What Home Insurance Covers The typical homeowners insurance policy has six types of coverage. They are commonly known as:
Remember that, despite having all of these different types of coverage, you’re only covered up to the dollar amounts that you select and only for covered losses, as outlined in your policy. Typically, you can change these policy limits at any time if you’d like to purchase more coverage. This is a good idea if, for example, you’ve recently added on to your home, acquired some pricey personal belongings or made other updates to your property. If needed, you can also reduce your coverage, though always ensure you are adequately protected. What Home Insurance Doesn’t Cover It’s just as important to know what your homeowners insurance doesn’t cover as it is to know what your home policy does cover. For starters, your policy does not cover any damage or repairs costing less than your deductible. It also does not cover any costs that exceed the coverage limits outlined in your policy. You are solely responsible for excess costs, unless you have an umbrella policy to provide additional liability coverage for a covered loss. More than likely, your policy also does not cover routine maintenance and repairs, as well as damage due to animals, termites, floods, earthquakes, sinkholes, sewer backups, and other incidents. These are often considered non-covered losses. If you experience a non-covered loss, as outlined by your policy, you will be responsible for the costs. What Home Insurance May Cover Outside of the typical home insurance coverage, optional or separate coverage may be available from your carrier or from a different carrier. For example, you may be able to purchase earthquake or flood coverage separate from your homeowners policy. Other coverage options are add-ons to your existing homeowners insurance. These can include identity protection and equipment breakdown coverage, which covers the cost to repair or replace a range of appliances and other equipment, such as pool equipment, in your home. If this sounds similar to an extended appliance warranty, it is. The difference is that you can insure an array of appliances at once through this optional coverage rather than purchasing a separate warranty for each one. This guide is a starting point for understanding your home insurance policy. Your own policy may vary greatly from the descriptions above depending on the state where you live, your carrier, and the coverage you have selected. So take a close look at your policy by reviewing your documents or viewing your coverage online. Or, even better, sit down with one of our insurance agents who can explain your coverage in detail, as well as discuss whether your policy provides adequate protection for your home, property, and belongings. Reposted with permission from the original author, Safeco Insurance®.
37 Comments
11/4/2019 10:02:31 am
I didn't know that homeowners' insurance could cover things like theft of your personal belongings but that's really awesome! It's good to know that if anything bad happens to your items, you won't have to worry too much. I own a few guns so I'm glad that they're protected by my insurance.
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11/5/2019 09:52:43 am
Hey Randy,
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4/20/2020 11:12:29 am
Thanks for explaining that the Coverage B option of a typical insurance policy will cover damage to other structures like sheds or detached garages. My husband and I are doing some research about homeowners' insurance because we plan on buying our first single-family house together this June. I'm glad I read your article os I can be more informed as we evaluate our options for insurance coverage for the house!
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4/20/2020 03:47:17 pm
Thanks for your comment, Rebecca! We're so glad you found this information useful. And an early congratulations to you and your husband on buying your first home together!
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9/24/2020 05:23:17 am
I'm glad how this article elaborated the things that a home insurance covers, such as damages to the property or the personal belongings inside it. My best friend is looking for a home where she could stay with her son and settle down. I'll be sure to let her know about home insurance so that she'd consider getting one for her future home.
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10/28/2020 04:07:42 pm
It's interesting that you elaborate on how homeowners insurance can cover your financial losses in the event that your house gets damaged. I'm thinking about purchasing a house this year, so I'll want to make sure that I buy some homeowners insurance coverage. I'm going to see if there's a good business near me that can help me get a homeowners insurance policy.
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12/14/2020 04:28:12 pm
My aunt has been thinking about taking better care of her home by getting a home insurance policy. Getting some help from a professional to get the right insurance could be really useful. I liked what you said about how the set policy limits can handle temporary housing, and related expenses.
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12/18/2020 01:06:18 pm
I appreciate your explanation that separate coverage may be available for your carrier or a different one. I need to find the house I want to buy first. Then I can determine what coverage is best for me and what I need to try and get separate.
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12/22/2020 02:04:10 pm
It's great that you point out that homeowners insurance can help cover you financially in case your house gets damaged. I want to buy my first house this year, so it sounds like I'll need to buy some homeowners insurance for it. I'm going to look for a good business in the area that can help me get some homeowners insurance.
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1/25/2021 12:50:20 pm
I appreciate that this post highlighted that homeowners insurance cover damages on our properties as well as the personal belongings inside the properties. I do believe that it is always important for us to be extra cautious when it comes to safety. As we can never predict when accidents occur, it is important for us to apply for homeowners insurance to be on the safe side
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2/1/2021 01:33:45 pm
It was helpful when you explained that Coverage C in a home insurance policy is for valuable personal property like jewelry or guns. My brother and his wife are preparing to move to a larger home with more room for their two kids. Since they have some valuable artwork they probably want to protect, this info should help them decide on their priorities before discussing their options with potential home insurance providers soon.
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2/5/2021 09:07:08 pm
My aunt has been thinking about getting home insurance for her place to make sure that it can be a lot safer. She would really like to get some help from a professional to make sure that she has the right coverage. I liked what you said about how she can ensure structures that aren't attached to her home from damage from tornados.
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2/9/2021 02:59:36 pm
It's awesome that you point out that homeowners insurance can help protect you financially in case your house gets damaged unexpectedly. I'm planning on buying my first house soon, so I should probably buy some homeowners insurance for it. I'm going to see if there's a good business in my area that can sell me some homeowners insurance.
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2/18/2021 02:55:06 pm
Thanks for pointing out that home insurance can help cover you financially in case your house is destroyed in a disaster. I'm thinking about buying a house this year, so I'll want to make sure that I buy some good home insurance for it. I'm going to look for a good business in my area that can sell me some home insurance.
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2/25/2021 03:29:16 pm
It's great that you elaborate on how homeowners insurance can help cover you financially in case your house gets damaged. I want to buy my first house this year, so I'm considering buying some homeowners insurance for it. I'm going to look for a reputable business in the area that can sell me some homeowners insurance.
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2/26/2021 02:49:48 am
I appreciated it when you shared that all policies have exclusions and coverage limits so it is important to consider some factors when acquiring home insurance. My friend just mentioned the other day that she is thinking of fixing the roof of her house and she wants to claim the cost of the repairing work. I will suggest to her looking for a reliable service that can help to do estimate writing for her.
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3/31/2021 01:12:33 pm
I appreciate this information about insurance. My friend is looking to get new insurance. I'll help my friend out and share this article about insurance with him.
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4/5/2021 07:33:45 pm
Thanks for clearing up how all policies have coverage limits and exclusions. My brother wants to get a farm house that comes with some property. I doubt he has any insurance plans for it so I'll talk to him about getting all of it covered with the right plan.
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4/9/2021 04:51:38 am
Thank you very much for sharing about protecting your home understanding your home insurance policy here. I really hope I can work on your tips and it works for me too, I am happy to come across your article. Great post I must admit, keep sharing more…
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4/9/2021 12:11:58 pm
It's terrific that you mention that home insurance can help protect your financial well-being in case your house gets damaged. My wife and I want to buy a house together this year, so we're considering buying some home insurance with it. I'm going to look for a reputable business in the area that can help us get some home insurance coverage.
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5/4/2021 09:50:48 am
My wife and I are getting a home for the first time, so we're doing research to ensure that we do things properly. It makes sense that we would want to look into getting the right insurance plan! I can see how I might want to get specialized insurance just in case. Being able to have damage caused by weather protected by my insurance would be really nice for me.
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5/6/2021 02:20:43 pm
It's valuable that you mention that homeowners insurance can cover you financially in case your house gets damaged by a fire. I want to purchase my first house this summer, so it sounds like I'll want to get some homeowners insurance for it. I'm going to search for a good business in the area that can help me get some homeowners insurance.
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5/10/2021 03:42:48 am
Understood! Well, not just home insurance you can also benefits from life and health insurance.
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Hello,
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7/1/2021 01:17:19 am
It really helped when you said that homeowners insurance policy protects us by helping us rebuild our home or repair damage that results from a covered loss. Since my husband has a farm, I guess I should urge him to look for farm insurance on Friday that has livestock coverage. We're hoping to protect our livestock because it's our source of food.
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7/14/2021 07:45:11 pm
I appreciate that this post highlighted that while home insurance is typically comprehensive, it is similarly important to ensure that we cover the basics. My wife and I are looking to buy a new house. I will definitely look into applying home insurance to ensure the home is protected against natural disasters, accidents and liability.
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8/3/2021 11:19:19 am
I want to get a new home, but I'm not sure how to go about it. It makes sense that I would want to get a professional to help out with this! They would be able to ensure that things end up working out properly.
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8/14/2021 11:59:48 pm
Thank you for mentioning that you can get flood and earthquake insurance separate from your homeowner's policy. My wife and I just moved into a new home and it is recommended in the area to have flood coverage. We will be sure to get our flood insurance.
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8/26/2021 09:28:14 pm
I like that this post shared the importance of home insurance as it protects against damages. My wife is planning to buy a house. I will remind her accordingly.
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9/7/2021 08:19:46 pm
Thanks for pointing out that home insurance would usually be comprehensive, but still have limits. I guess I need to talk to a professional regarding the coverage of the policy. I need to know my options now that I will buy my own home this year after three years of saving up for this purchase.
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9/15/2021 11:25:52 am
I am glad to hear that home insurance is usually very comprehensive. I can handle the exclusions when they come up. But getting basic coverage is my main goal right now.
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10/7/2021 06:26:05 pm
Thanks for the heads-up that insurance probably doesn't cover regular maintenance. My wife and I just bought our first house and we're in need of homeowners insurance. We weren't sure if our needed sewer maintenance would be part of the coverage, so thanks for the help.
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11/5/2021 12:13:01 pm
My wife and I are getting a home soon, but we haven't considered what kind of insurance to get. It makes sense that we would want to get a plan that can protect us from things that will be a threat to us! We live in a place with a lot of rainfall, so being able to be protected from floods would be beneficial.
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2/13/2022 11:17:45 pm
I liked that this post shared that policy limits can generally be changed at any time if you would want to buy additional coverage. My parents just purchased a new property, and they want to have
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5/9/2022 04:25:56 pm
It is good to know that you can upgrade your home insurance policy to accommodate any additions in your life. My husband and I want to get adequate insurance coverage for the home we bought last month. We will keep an eye out for insurance providers that will allow us to upgrade our insurance if we have any changes that need to be accommodated for.
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