What Does Homeowners Insurance Actually Cover?
Sandy Ginn June 5, 2025
Sandy Ginn June 5, 2025
Owning a home is a significant investment, and homeowners insurance is designed to protect that investment. However, many homeowners aren’t entirely sure what their policy actually covers. While most policies provide financial protection against common risks, there are limitations and exclusions that are important to understand. Here’s a closer look at what homeowners insurance typically covers—and what it doesn’t.
Dwelling Coverage This part of your policy protects the physical structure of your home, including walls, roof, and foundation, against perils such as fire, windstorms, hail, and vandalism. If your home is damaged by a covered event, your insurance helps pay for repairs or rebuilding.
Other Structures Coverage
This provides protection for structures that are not attached to your main home, such as detached garages, sheds, fences, and guest houses. Coverage is typically a percentage of your dwelling limit and can be adjusted based on your property’s specific needs.
Personal Property Coverage Your belongings—furniture, electronics, clothing, and more—are covered if they are stolen or damaged due to covered perils like fire or theft. However, high-value items such as jewelry, artwork, and antiques may require additional coverage through a scheduled personal property endorsement to ensure full reimbursement.
Liability Protection If someone is injured on your property or if you accidentally cause damage to someone else’s property, liability coverage helps pay for medical expenses, legal fees, and settlements. This can also extend to incidents that occur away from your home, such as if your pet injures someone or if you accidentally cause property damage while traveling.
Additional Living Expenses (ALE) If your home becomes uninhabitable due to a covered event, ALE covers the cost of temporary housing, meals, and other expenses while your home is being repaired. This can be particularly valuable if repairs take months to complete.
Floods and Earthquakes Standard policies typically exclude damage from floods and earthquakes. If you live in a high-risk area, you may need separate policies for these risks through the National Flood Insurance Program (NFIP) or private insurers.
Routine Wear and Tear Insurance won’t cover maintenance issues or normal aging of your home, such as an old roof that needs replacing, plumbing deterioration, or pest infestations.
Certain Types of Water Damage While sudden water damage from a burst pipe is generally covered, sewer backups, sump pump failures, and gradual leaks are often excluded unless you purchase additional endorsements.
High-Value Items Beyond Policy Limits While personal property is covered, expensive jewelry, fine art, and collectibles may exceed coverage limits unless you have scheduled personal property coverage. Reviewing these limits with your insurer ensures proper protection for your valuables.
Homeowners insurance provides essential financial protection against common risks, but it doesn’t cover everything. Understanding your policy’s coverage, exclusions, and limitations ensures that you’re adequately protected. If you have specific concerns, it may be worth discussing additional coverage options with your insurance provider to fill any gaps.
To make sure you’re fully covered and connected with wonderful home insurers, reach out to The Sandy Ginn Team today.
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