What does home insurance cover?

The answer to what does home insurance cover is that a typical homeowners insurance policy covers your home and its contents if damaged, including incidents like fire, theft, vandalism, or other similar events.

Homeowners insurance coverage also covers your heating and cooling systems, kitchen appliances, clothes, furniture, and certain personal possessions. In addition, home insurance coverage also helps with garages, sheds, and other outdoor buildings.

When searching for a home insurance policy, it’s important to research before making a final decision on coverage. Consider different insurance companies in your area, and learn more about what each home insurance policy does and doesn’t cover.

As you search for the best homeowners insurance policy, you should also compare home insurance quotes for home insurance coverage from several companies. When you compare quotes, you get a better idea of which company offers the coverage you’re looking for at a price that works with your budget.

What Home Insurance Covers

Homeowners policies provide coverage for your home and its contents after damage. Coverage with most home insurance policies breaks down into four separate categories:

• Insurance for the structure of your home
• Insurance for personal belongings
• Liability coverage on your property
• Living expenses if you must live away from home

Each of these categories offers a different type of protection that homeowners may need if a covered event occurs.

Home Structures Covered

Standard homeowners insurance will pay to repair or rebuild the structure of your home if certain things damage it. In most cases, the following incidents are covered under a home insurance policy:

• Fire
• Theft
• Vandalism
• Hurricane
• Hail
• Lightning
• Wildfire
• Other natural disasters listed under your policy

In addition to the structure of your home, a typical home insurance policy also covers certain detached structures on your property, like a garage, shed, outdoor fireplace, or fence. In most cases, a home insurance policy will cover detached structures for up to 10% of the dollar amount you have for coverage for your home.

You can speak with an insurance representative if you have specific questions based on your home, its structure, or detached structures on your property to ensure you have enough coverage. You may also need help to learn how much home insurance to buy.

Read more: 10 States With the Highest Wildfire Risk

Home Belongings Covered

In most cases, a standard home insurance policy will cover the following:

• Furniture
• Clothes
• Sports equipment
• Appliances
• Trees and plants

Some policies may cover musical instruments, designer clothes, expensive jewelry, and artwork, while other home insurance policies won’t. If you have a home insurance policy that doesn’t cover certain personal items, you may be able to add property insurance coverage to your policy.

Property insurance coverage, or personal property coverage, covers personal items in your home that a standard policy may not cover.

In general, a home insurance policy will cover your items up to 50%-70% of the insurance you have on your home’s structure.

Home Liability Insurance 

Your home insurance policy’s liability coverage is one of the home insurance types that protects you against lawsuits. In addition, if you or a family member cause bodily injury or damage on or off your property, your home insurance policy will help pay for repairs, doctor visits, and other things.

Similarly, if you have a pet that injures someone else, your home insurance policy will pay for the medical bills associated with the covered injury.

Liability insurance with a home insurance policy also covers the cost of defending you in court if someone sues you. Coverage extends to the dollar amount stated in your home insurance policy. Most liability insurance policies with home insurance start around $100,000.

Speak with an insurance representative to determine whether you need additional coverage, like an umbrella liability policy.

Home Insurance Claims for Living Expenses

If your home gets damaged to the point that you must live elsewhere while it’s repaired, your home insurance policy will cover the cost. Living expense coverage with your home insurance policy helps with the following:

• Hotel bills
• Restaurant costs
• Groceries
• Temporary office space

Assistance with living expenses through your home insurance policy is separate from coverage to repair your home. So, you shouldn’t have to worry whether your policy will simultaneously help with living expenses and repairs. Still, some home insurance policies have a time limit. Familiarize yourself with your policy to learn more.

What Home Insurance Doesn’t Cover 

While home insurance coverage can be expansive, there are certain things a home insurance policy doesn’t cover. The most common things not covered under home insurance include:

• Earthquakes
• Sinkholes
• Floods
• Sump pump overflow
• Termites
• Insect damage
• Bird or rodent damage
• Rust, rot, or mold
• Wear and tear
• Smog or smoke damage
• Damage from war or nuclear hazards
• Identity theft

Certain exclusions listed above may not apply if you’ve added coverage to your home insurance policy to cover them. For example, you can purchase flood insurance in addition to your standard home insurance policy to ensure your home is covered if there’s ever a flood in your area. 

Read more: Does homeowners insurance cover mold?

If you’re wondering does homeowners insurance cover roof leaks and other issues, the answer depends on how the damage occurred. For example, if the damage that caused a roof leak was sudden, like a fallen tree, your home insurance policy would cover repairs. However, if the damage was caused by general wear and tear, you may have to pay for repairs yourself.

Case Studies: Demonstrating the Benefits of Home Insurance

Case Study 1: Fire Damage

John and Mary Smith, homeowners in a quiet suburban neighborhood, experienced a devastating fire that caused significant damage to their property. Fortunately, their comprehensive home insurance policy provided the necessary coverage to repair the structure of their house and replace their damaged personal belongings.

With the financial support from their insurance, John and Mary were able to rebuild their home and replace their belongings, helping them recover from the fire without bearing the burden of substantial expenses.

Case Study 2: Theft and Vandalism

Sarah Davis, a homeowner in an urban area, fell victim to a burglary and vandalism incident, resulting in the theft of valuable items and extensive property damage.

However, thanks to her comprehensive home insurance coverage, Sarah received compensation for the stolen items and the necessary funds to repair the damages to her home. The insurance coverage provided Sarah with the peace of mind and financial support she needed during this challenging time.

Case Study 3: Damage from a Fallen Tree

Mark Thompson, a homeowner residing in a wooded area, experienced severe weather conditions that caused a large tree to fall onto his property, damaging the roof and causing water leakage.

Fortunately, Mark’s home insurance policy included coverage for such events. The insurance company promptly covered the cost of repairing the roof and addressing the resulting water damage, saving Mark from a significant financial burden and ensuring the restoration of his home.

Case Study 4: Liability Coverage

Jennifer and Robert Johnson, homeowners in a family-oriented neighborhood, faced a legal challenge when a visitor slipped and fell on their property, resulting in injuries. However, their home insurance policy’s liability coverage came to their rescue.

The insurance company covered the medical expenses and legal fees associated with the incident, providing Jennifer and Robert with the necessary support and protecting them from a potential financial crisis.

The Final Word on Home Insurance Coverage 

The best way of buying home insurance is to shop and compare policies and quotes online. First, you can research different companies and what they offer to determine what you want. Next, compare quotes from several insurance companies to determine which offers the right affordable coverage.

Some companies will offer additional coverage, and some won’t. If you want personal property or flood coverage, ensure that any company you consider offers the type of home insurance policy you’re looking for.