What Does Homeowners Insurance Cover? (2024)

Table of Contents
What Is Homeowners Insurance? What Does Homeowners Insurance Cover? Does Homeowners Insurance Cover Mold? Does Homeowners Insurance Cover Roof Leaks? Does Homeowners Insurance Cover Plumbing? Does Homeowners Insurance Cover Foundation Repair? Does Homeowners Insurance Cover Termite Damage? Does Homeowners Insurance Cover Fires? Does Homeowners Insurance Cover Tree Removal? Does Homeowners Insurance Cover Water Damage? Does Homeowners Insurance Cover Roof Replacement? Does Homeowners Insurance Cover Theft? What Disasters Does Homeowners Insurance Cover? What Is Not Covered by Homeowners Insurance? What Coverage Types Are Included in a Homeowners Insurance Policy? Dwelling Coverage Other Structures Coverage Personal Property Coverage Liability Insurance Medical Payments to Others Coverage Loss of Use/Additional Living Expenses Coverage Types of Home Insurance Coverage Levels of Coverage for Homeowners Insurance Dwelling Coverage Levels Personal Property Coverage Levels How Much Is Homeowners Insurance? Average Homeowners Insurance Cost What Can Make It Hard to Buy Homeowners Insurance? When Does Homeowners Insurance Pay Out? Looking for Homeowners Insurance? What Does Homeowners Insurance Cover FAQs What’s the difference between actual cash value and replacement cost coverage? What’s the difference between home market value and insurance value? Do I include land value for insurance? What’s the difference between homeowners insurance and a home warranty? FAQs

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Homeowners insurance is one of the most essential types of insurance. The best home insurance policy provides coverage for some of your biggest assets: your house and all your belongings. But it also covers other types of problems, such as accidental injuries to others and additional living expenses if you can’t live in your home due to a problem like a fire.

Knowing what’s actually covered by homeowners insurance can give you peace of mind—or even prompt you to buy extra coverage.

  • What Is Homeowners Insurance
  • What Does Homeowners Insurance Cover?
  • What Is Not Covered by Homeowners Insurance?
  • What Coverage Types Are Included in a Homeowners Insurance Policy?
  • Levels of Coverage for Homeowners Insurance
  • How Much Is Homeowners Insurance?
  • Average Homeowners Insurance Cost
  • What Can Make It Hard to Buy Homeowners Insurance?
  • When Does Homeowners Insurance Pay Out?
  • Homeowners Insurance FAQ

What Is Homeowners Insurance?

Homeowners insurance is a contract between you and an insurance company that outlines the situations in which the insurance company will reimburse you for costs related to damage and theft.

What Does Homeowners Insurance Cover?

The most common homeowners insurance policy, called the HO-3, covers your house (dwelling structure) for any problem except those listed as exclusions in the policy.

Personal property is covered if the damage is from specific “perils,” which is insurance-speak for “problems.” An HO-3 policy covers personal property for these perils:

  • Accidental discharge or overflow of water or steam
  • Aircraft, including self-propelled missiles and spacecraft
  • Explosion
  • Falling objects
  • Fire or lightning
  • Freezing
  • Riot or civil commotion
  • Smoke
  • Sudden and accidental damage from artificially generated electrical current
  • Sudden and accidental tearing apart, cracking, burning or bulging
  • Theft
  • Vandalism or malicious mischief
  • Vehicles
  • Weight of ice, snow or sleet
  • Windstorm or hail
  • Volcanic eruption

If you want better coverage for your possessions, ask your insurance agent about an HO-5 or similar type of home insurance policy. (Not all insurers use these standard policy types.) An HO-5 policy covers your house and all your personal property for all problems except those that are specifically excluded.

Does Homeowners Insurance Cover Mold?

Mold damage may be covered by a homeowners insurance policy but it depends on the policy and the specific problem that caused the mold. Home insurance for mold damage typically covers sudden and accidental water damage, but they don’t cover mold damage caused by long-term leaks that you didn’t repair.

For instance, a home insurance policy will likely cover you if mold is the result of a burst pipe.

Does Homeowners Insurance Cover Roof Leaks?

Homeowners insurance for roof damage generally covers roof leaks that are the result of sudden and accidental damage, such as heavy rain and wind damage.

Home insurance won’t cover the roof if you didn’t properly maintain it.

Does Homeowners Insurance Cover Plumbing?

Home insurance for plumbing damage typically covers damage if it was sudden and accidental, such as a burst pipe, fire, falling object or frozen pipes in a heated room.

Home insurance won’t cover plumbing damage if it’s the result of wear and tear, frozen pipes in an unheated home, negligence, preventable leaks or sewer and sump pump backup (unless it specifically is added onto the policy).

Does Homeowners Insurance Cover Foundation Repair?

Home insurance covers foundation repairs following sudden and unexpected problems, such as:

  • Accidental and sudden water damage (such as a burst pipe).
  • Objects like trees falling on your home.
  • Home fires and wildfires.
  • Damage from smoke.
  • Lightning strikes.
  • Sudden and accidental events like a vehicle crashing into your house or an explosion caused by a gas leak.
  • Tornadoes.
  • Vandalism.
  • Windstorms.

Does Homeowners Insurance Cover Termite Damage?

Home insurance covers problems that are sudden and accidental. Termite damage is usually gradual and can be prevented with maintenance, so it is usually not covered.

But there are some rare exceptions when homeowners insurance covers termite damage, such as:

  • If termite damage causes a problem covered by your policy, such as termites chewing through wires and causing a fire. Your home insurance will cover the fire-related damage.
  • If a problem covered by your policy leads to termites, such as a sudden pipe burst that creates an environment that attracts termites.

Does Homeowners Insurance Cover Fires?

Home insurance covers accidental fires that damage your house and belongings.

The parts of coverage that pay for fire damage are dwelling coverage for your house, “other structures” coverage for sheds, detached garages and fences, and personal property coverage for your belongings.

Additional living expenses coverage, also called loss of use coverage, can reimburse you if you have to live elsewhere temporarily while your home is being repaired or rebuilt following problem covered by your policy, like a tornado.

Does Homeowners Insurance Cover Tree Removal?

Home insurance typically doesn’t cover tree removal for preventative purposes. You are responsible for paying to remove trees that may be leaning, rotting, dying or dangerous.

It’s a good idea to remove any dead or rotten trees. If a rotten or dead tree falls and damages your house or detached structure (like a shed), you may not be covered. That’s because most home insurance companies won’t cover problems caused by poor maintenance, which could include a failure to remove rotted and dead trees.

Your insurance company may cover the cost of tree removal up to a certain amount if it is part of a storm damage insurance claim, such as $500 or $1,000, depending on your policy. For example, if a lightning strike or windstorm causes a tree to fall and block your driveway, your insurance company might pay $500 for debris removal and you would be responsible for any tree removal costs that exceed this amount.

Does Homeowners Insurance Cover Water Damage?

Home insurance covers water damage for sudden and accidental problems, such as:

  • Accidental leaks such as a plumbing or appliance leak
  • Burst pipes
  • Ice dams
  • Water damage after a fire
  • Water damage from a storm

Home insurance does not cover water damage that was due to:

  • Damage due to neglect or lack of maintenance, such as not fixing a plumbing problem or failing to keep the heat on during freezing temperatures.
  • Earth movement such as an earthquake, landslide or mudslide.
  • Floods.
  • Repairing or replacing the source of water damage, such as fixing a broken dishwasher.
  • Seepage or leaks through a foundation.
  • Sewer or drain backup (unless you purchased extra coverage for this problem).
  • Swimming pool leaks.
  • Sump pump failure.

Does Homeowners Insurance Cover Roof Replacement?

Home insurance covers roof replacement for certain types of problems, such as:

  • Falling objects (like a tree)
  • Lightning
  • Fire and smoke
  • Vandalism
  • Weight of snow and ice
  • Wind and hail

Home insurance won’t cover roof damage for these types of problems:

  • Animals, such as termites and mice
  • Earthquakes
  • Gradual wear and tear
  • Homeowner neglect
  • Normal roof aging
  • Rot or mold

Does Homeowners Insurance Cover Theft?

Homeowners insurance covers theft and burglary, but how much you’re covered depends on your policy limits.

The coverage limit for personal property is typically set at 50% or 70% of the dwelling coverage amount. But certain items, such as jewelry, may only be covered up to a certain amount for theft, such as $1,500. Consider scheduled personal property coverage. Scheduled personal property—also called an endorsem*nt, floater or rider—is optional coverage to your homeowners insurance policy that provides more coverage for high-value items.

What Disasters Does Homeowners Insurance Cover?

Home insurance covers storms and wind in most states, though you may have a separate hurricane insurance deductible if you file a claim. A standard home insurance policy doesn’t cover flood damage, but you can buy a separate flood insurance policy.

Home insurance also doesn’t cover earthquake damage, but you can buy earthquake insurance.

What Is Not Covered by Homeowners Insurance?

Common exclusions in a standard homeowners insurance policy include:

  1. Earth movement, including earthquakes, mudslides, mudflow, sinkholes, shockwaves or tremors due to a volcanic eruption, and any other earth movement such as sinking, rising or shifting.
  2. Governmental action, such as the destruction, confiscation or seizure of your property.
  3. Intentional damage that you or your household members do. (Vandalism by someone else is covered.)
  4. Neglect, such as not taking proper care of your property.
  5. Nuclear hazard.
  6. Ordinance or law, meaning situations where the government requires you to demolish, rebuild, renovate or repair your home to meet local ordinances.
  7. Power failure if it happens off the property. If the power failure is caused by something on the property, home insurance typically covers damage from a power failure.
  8. War.
  9. Water damage, including floods, water that backs up through sewers or drains (unless you have added special coverage for this), and leaks from swimming pools or other structures.

What Coverage Types Are Included in a Homeowners Insurance Policy?

Dwelling Coverage

Dwelling coverage, or hazard insurance, pays to rebuild or repair the physical structure of your house if it’s damaged by a problem covered by the policy, like a fire or damage from a fallen tree.

Other Structures Coverage

Your dwelling not only includes your house, but also other structures such as a garage, deck or back porch, as long as the structure is attached to your home. Detached structures, like a shed or fence, are typically covered under your “other structures coverage.”

Personal Property Coverage

Personal property coverage pays to replace or repair your belongings after a problem covered by the policy. Personal property can include things like your clothes, electronics, jewelry, pots and pans, furniture, rugs, even the little knick-knacks and decorations you keep on your bookshelves.

Personal property coverage is generally set between 50% to 70% of your dwelling coverage. For example, if your house is insured for $300,000 and your personal property is set at 50%, you would have $150,000 for personal property.

You can buy more personal property coverage. You can determine how much you need by calculating how much it would cost to replace everything you own if your house were destroyed in a worst-case scenario (like a fire or tornado). Creating a home inventory is a good way to start.

A good home inventory has an item description, the estimated value, purchase date, and receipts and serial numbers (if available). A home inventory can be as simple as a written list, pictures, video, or an inventory done in a mobile app.

Certain categories of items, such as musical instruments, jewelry and electronics have a limit on how much your insurance company will pay to replace them if they are stolen. For example, your policy might theft of jewelry to $1,500. If you want more coverage, you can “schedule” certain high-value items.

Liability Insurance

Liability insurance pays for accidental injuries and property damage to others that you or your household members are responsible for. Homeowners liability insurance also pays for your legal defense if someone sues you because of an injury or damage that’s covered by your home insurance. Here are some examples of when liability coverage can pay out:

  • A guest slips on your icy sidewalk and gets hurt.
  • Your dog bites someone and causes injury.
  • Your dog destroys someone else’s fence.
  • Your child accidentally hits a baseball through a neighbor’s window.

Generally, liability limits start at $100,000 of coverage, but you can buy higher amounts. If you have significant assets, you should also buy an umbrella insurance policy, which costs an average of $380 per year for $1 million to $2 million in coverage, according to Trusted Choice, a group for independent insurance agents.

Medical Payments to Others Coverage

Medical payments coverage in home insurance can pay for minor injuries if a guest is hurt on your property. This coverage is usually sold in a small amount, typically between $1,000 and $5,000. It’s a good way to cover basic medical expenses without legal complications (such as a lawsuit). More expensive injury claims would fall under your liability insurance.

Loss of Use/Additional Living Expenses Coverage

If you cannot live in your home because of a problem covered by the policy, such as a fire, loss of use coverage reimburses you for extra expenses like hotel bills, meals and other costs (such as laundry services and pet boarding fees).

Loss of use coverage is often set at a certain percentage of your dwelling coverage. For example, if your loss of use limit is 30% of your dwelling coverage, and your dwelling coverage is $300,000, you would have up to $90,000 for additional living expenses. You may be able to increase the coverage limit.

Types of Home Insurance Coverage

TypeTypical amount of coverage
Dwelling coverageShould be enough to rebuild your house if it’s damaged or destroyed
Other structures coverage10% of dwelling coverage
Personal property coverage50% to 70% of dwelling coverage
Personal liability coverage$100,000 to $500,000 (if you need more, you can buy umbrella insurance)
Medical payments coverage$1,000 to $5,000
Additional living expenses20% of dwelling coverage

Levels of Coverage for Homeowners Insurance

When you purchase a home insurance policy, you’ll typically have the option to choose higher levels of coverage for your dwelling and personal property. Some insurers also offer extended or guaranteed replacement cost coverage.

Dwelling Coverage Levels

There are three main ways you can get reimbursed for damage to your house.

  • Replacement cost coverage. Dwelling coverage pays to repair or replace your house with materials similar to what was there before the damage. When you buy home insurance, you’ll want to buy enough dwelling insurance to cover the estimated cost to rebuild your house if it were totally destroyed.
  • Extended replacement cost. This is the next step up in coverage. This provides additional repair money if your dwelling coverage is not enough. For example, a spike in labor and materials could make repairs more expensive than you anticipated. Extended replacement cost coverage is typically capped. For example, it might provide 25% extra over your dwelling coverage amount.
  • Guaranteed replacement cost. This is the highest coverage level and pays any cost to repair or replace your house.

Not all insurance companies sell each level of coverage. For example, guaranteed replacement cost can be hard to find.

Personal Property Coverage Levels

There are two main ways you will be reimbursed if your belongings are stolen or damaged due to a problem covered by your policy (like a fire): replacement cost vs. actual cash value coverage.

  • Actual cash value (ACV) coverage. This reimburses you for your damaged or stolen personal property minus depreciation. For example, if your 10-year old TV is damaged in a fire, ACV coverage reimburses you for a 10-year old TV, not a new one.
  • Replacement cost coverage. This pays to replace your stolen or damaged items with new, similar items. For example, if your 10-year old TV is damaged in a fire, replacement cost coverage will pay for a new, similar model.

Replacement cost coverage costs more than actual cash value coverage because you’ll be paid more if you file a home insurance claim, but it’s generally the better coverage choice.

How Much Is Homeowners Insurance?

The average cost of homeowners insurance is $1,582 a year for a policy with $350,000 dwelling coverage and $100,000 in liability coverage, according to Forbes Advisor’s analysis. The average homeowners insurance cost is $2,090 a year for a homeowners policy with $500,000 dwelling coverage and $100,000 liability coverage.

There are many factors that are used to determine average cost of homeowners insurance, including:

  • The cost to rebuild the house.
  • The materials that make up your house, such as wood, brick, stone or stucco.
  • The age of your home.
  • Your area’s fire rating (how close you are to a water source and fire department).
  • The claims history in your area, such as tornadoes and crime rates.
  • Your personal claims history.
  • Dogs (certain dog breeds are banned by some home insurance companies).
  • The coverage and policy limits you select.

Average Homeowners Insurance Cost

StateAverage cost per year of $200,000 in dwelling coverageAverage cost per year of $350,000 in dwelling coverageAverage cost per year of $500,000 in dwelling coverageAverage cost per year of $750,000 in dwelling coverage
Alabama$1,406$1,996$2,654$3,795
Alaska$769$1,101$1,446$1,990
Arizona$939$1,262$1,643$2,356
Arkansas$1,487$2,156$2,855$4,027
California$720$1,013$1,321$1,923
Colorado$1,540$2,164$2,808$3,872
Connecticut$781$1,083$1,438$2,031
Delaware$570$872$1,253$1,874
Florida$1,563$2,512$3,486$5,177
Georgia$1,516$2,332$3,183$4,640
Hawaii$264$364$498$751
Idaho$791$1,119$1,503$2,127
Illinois$1,066$1,416$1,837$2,589
Indiana$996$1,370$1,794$2,546
Iowa$1,106$1,636$2,201$3,183
Kansas$1,737$2,525$3,359$4,810
Kentucky$1,506$2,206$3,044$4,425
Louisiana$2,271$3,549$4,832$7,255
Maine$634$962$1,319$1,979
Maryland$877$1,256$1,708$2,470
Massachusetts$835$1,138$1,499$2,194
Michigan$794$1,209$1,725$2,507
Minnesota$1,035$1,507$2,036$2,824
Mississippi$1,919$2,734$3,618$5,207
Missouri$1,308$1,762$2,264$3,207
Montana$1,019$1,406$1,825$2,510
Nebraska$1,795$2,591$3,379$4,673
Nevada$538$745$998$1,466
New Hampshire$563$802$1,072$1,533
New Jersey$576$858$1,137$1,596
New Mexico$847$1,368$1,916$2,766
New York$737$1,087$1,496$2,174
North Carolina$884$1,560$2,080$2,921
North Dakota$1,183$1,656$2,139$2,973
Ohio$752$1,025$1,344$1,896
Oklahoma$2,436$3,651$4,967$6,986
Oregon$583$784$1,052$1,550
Pennsylvania$615$884$1,217$1,746
Rhode Island$899$1,271$1,649$2,307
South Carolina$930$1,394$1,881$2,819
South Dakota$1,312$1,895$2,551$3,594
Tennessee$1,202$1,641$2,232$3,205
Texas$1,740$2,547$3,383$4,968
Utah$528$643$831$1,242
Vermont$566$845$1,145$1,571
Virginia$783$1,100$1,491$2,164
Washington$773$1,088$1,446$2,111
West Virginia$875$1,280$1,717$2,461
Wisconsin$644$949$1,259$1,811
Wyoming$748$1,145$1,623$2,502
Source: Quadrant Information Services

What Can Make It Hard to Buy Homeowners Insurance?

Home insurance companies can be skittish about selling policies to certain people or when there are specific property issues. There are many possible reasons an insurer might decide not to sell you coverage. Here are examples:

  • The house has a deteriorated roof.
  • The house is vacant.
  • You won’t allow a survey of the property you want to insure.
  • Someone in your household has been convicted of arson.
  • You had a home insurance policy that was canceled for non-payment in recent years.
  • You have a porch or deck that is rotted.
  • The builder used unconventional material or methods.

When Does Homeowners Insurance Pay Out?

Homeowners insurance pays a claim when your house is destroyed or damaged due to a problem covered by your policy. For example, if an accidental kitchen fire damages the walls and ceiling, your home insurance would pay to cover the repairs (minus your insurance deductible).

Home insurance also pays out for other types of problems. Here are claim examples for each coverage type:

  • Dwelling coverage: If a windstorm damages your home, your home insurance will pay to repair it.
  • Other structures coverage: If your shed is destroyed by a fire, your home insurance will pay to replace it.
  • Personal property coverage: If a thief steals your laptop, your home insurance will pay to replace it.
  • Personal liability coverage: If a guest trips on your cracked sidewalk, your liability insurance can pay for their medical bills. It also pays for your legal costs if you are sued because of the accident.
  • Medical payments to others coverage: If a guest suffers a minor injury while visiting your home, medical payments to others can help pay for smaller medical bills such as a trip to urgent care.
  • Additional living expenses (ALE) coverage: If you can’t live in your house because of a fire, you can tap your ALE for expenses like a hotel room and restaurant meals.

Looking for Homeowners Insurance?

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What Does Homeowners Insurance Cover FAQs

What’s the difference between actual cash value and replacement cost coverage?

When you purchase a home insurance policy, you’ll often have a choice between replacement cost or actual cash value coverage for your belongings. Replacement cost coverage is more expensive because it reimburses you for brand-new, similar versions of the items that were destroyed. Actual cash value coverage takes depreciation into account (meaning the value of the item at the time of the loss).

For example, if your TV is damaged by a problem covered by the policy (such as a fire), replacement cost coverage will pay for a new TV of a comparable model. Actual cash value coverage will only pay what the TV was worth at the time of the problem, and you would need to make up the difference if you buy a new TV.

Replacement cost coverage offers better insurance protection. A standard HO-3 policy offers actual cash value coverage, so make sure you have an endorsem*nt that upgrades your policy to replacement cost coverage.

What’s the difference between home market value and insurance value?

A home’s market value is based on the property’s worth when buying or selling it. A home’s insurance value is the amount you would need to rebuild the home if it were destroyed. This amount includes materials and labor and varies based on your local construction costs. Your insurance company or agent can estimate the rebuilding cost of your house.

A home’s real estate market value could be higher or lower than the actual cost to rebuild the house.

Do I include land value for insurance?

Land value should not be included in your homeowners insurance coverage limit. You want to determine your dwelling coverage limit based on the cost to rebuild the house from the ground up.

What’s the difference between homeowners insurance and a home warranty?

Homeowners insurance doesn’t cover the mechanical breakdown of appliances, like a dishwasher that stops washing or a clothes dryer that doesn’t heat up. That’s where a home warranty would come in, paying for repairs covered by the warranty plan.

For example, if your furnace stops working, a home warranty plan could pay for repairs. If your furnace is destroyed in a house fire, homeowners insurance would pay for its replacement.

Related: Home Insurance vs. Home Warranties

What Does Homeowners Insurance Cover? (2024)

FAQs

What Does Homeowners Insurance Cover? ›

Homeowners insurance covers damage to your home's structure and personal belongings and protects you if someone is injured on your property. It's important to understand your policy's limitations and when to elect add-ons, such as scheduled personal property, earthquake, flood, and water backup coverage.

What does a homeowners insurance policy typically cover? ›

Homeowners insurance typically covers your dwelling, other structures on your property, personal property, personal liability, medical payments to others, and loss of use costs.

What is not covered in a homeowners policy? ›

Termites and insect damage, bird or rodent damage, rust, rot, mold, and general wear and tear are not covered. Damage caused by smog or smoke from industrial or agricultural operations is also not covered. If something is poorly made or has a hidden defect, this is generally excluded and won't be covered.

What is the most important thing in homeowners insurance? ›

Make sure you're covered for the right amount – your home insurance policy should cover the full value of your home in case of damage or destruction. When it comes to home insurance, you want to make sure you're getting the right amount of coverage.

What is included in property insurance coverage? ›

Property insurance can include homeowners insurance, renters insurance, flood insurance, and earthquake insurance, among other policies. The three types of property insurance coverage include replacement cost, actual cash value, and extended replacement costs.

Which of the following is not covered for homeowners? ›

Standard homeowners insurance does NOT cover damage caused by flooding, earthquakes, termites, mold, or normal wear and tear.

Does homeowners insurance pay off your mortgage if the house is lost? ›

If a covered disaster completely destroys your house, your standard homeowner's insurance policy includes a "loss of use" or "additional living expense" protection, providing temporary housing until you recover. It pays off your mortgage, freeing you of that obligation.

What not to say to home insurance? ›

Dealing with an insurance adjuster can be a delicate dance. There are certainly things you should avoid saying if you want to maximize your chances of a fair settlement. Avoid admitting fault or underestimating damages as this might lead to lower compensation or even denial of your claim.

What is the 80% rule in insurance? ›

When it comes to insuring your home, the 80% rule is an important guideline to keep in mind. This rule suggests you should insure your home for at least 80% of its total replacement cost to avoid penalties for being underinsured.

What are the major exclusions in a typical homeowners policy? ›

Common exclusions in even the most comprehensive homeowners policies include: earth movement, such as earthquakes; sinkholes or landslides that damage your home; water damage, such as floods or sewer back-ups that leak through a pipe or seep through the foundation causing damage to your home; damage resulting from ...

What should I add to my home insurance? ›

For added peace of mind, you can enhance your home insurance policy with extra cover options. These include accidental damage, legal protection, home emergency, gardens, and bicycles. There is also an "Away-from-home" extra cover option that covers your belongings when they're outside of your home.

What is the most common home insurance policy? ›

The most common type of homeowners insurance policy is the standard HO-3 Special Form policy. HO-5 policies offer the broadest coverage of all policy types. Open peril coverage means losses are covered unless specifically excluded, while named peril coverage means only named loss types are covered.

What are the cons of homeowners insurance? ›

Cons of Home Insurance:
  • Cost: One of the primary drawbacks is the cost of home insurance. ...
  • Deductibles: Home insurance policies often come with deductibles, which means you need to pay a certain amount out of pocket before the insurance coverage kicks in.
Oct 12, 2023

What does homeowners insurance actually cover? ›

It pays to repair, replace, or rebuild your home's structure after a covered peril. This could include fire, theft, vandalism, or a weather event such as lightning, wind, or hail. It could also cover damage from external forces like a falling tree branch.

Who has the cheapest homeowners insurance? ›

State Farm is the cheapest home insurance provider in 22% of states and Allstate is the cheapest provider in 18% of states. Oklahoma has the most expensive home insurance with policies averaging $6,325 per year, while Hawaii offers the lowest average annual premium at $782.

What are the six categories typically covered by homeowners insurance? ›

A standard homeowners insurance policy covers the following:
  • Dwelling Coverage.
  • Other Structures Coverage.
  • Personal Property Coverage.
  • Loss of Use / Additional Living Expenses Coverage.
  • Liability Coverage.
  • Medical Payments to Others Coverage.
Apr 22, 2024

What is the most common basic homeowners insurance policy? ›

The most common type of homeowners insurance policy is the standard HO-3 Special Form policy. HO-5 policies offer the broadest coverage of all policy types. Open peril coverage means losses are covered unless specifically excluded, while named peril coverage means only named loss types are covered.

What does coverage A include under a homeowners policy? ›

Coverage A: Dwelling

The homeowner policy's first coverage section protects your house and any attached structures, such as garages, decks, or fences. The typical policy covers your home when it is damaged by many perils (also known as causes of loss) including fires or storms.

What does a typical homeowners insurance policy cover quizlet? ›

Typical homeowners insurance policies offer coverage for damage caused by fires, lightning strikes, windstorms and hail. But, it's important to know that not all natural disasters are covered by homeowners insurance. For example, damage caused by earthquakes and floods are not typically covered by homeowners insurance.

Does home insurance cover accidental damage? ›

Accidental damage cover isn't normally included as standard, so it depends on your policy. You might get it with buildings insurance, or contents insurance, or you may have it with a combined policy. But with most home insurance, you'll need to buy it as an optional add-on.

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