Homeowners insurance can help protect you in the event of a fire, theft, or other perils. It also offers liability coverage in case someone is injured on your property. While there are many different types of homeowners insurance policies, you should have at least a basic policy that covers your house and its contents from fire, windstorms, hail, falling objects, and other hazards.
What Do Home Insurance Plans Cover?
Property Damage Coverage
This helps pay to repair or replace your home and its contents, including appliances and mechanical systems like heating or air conditioning. It also covers other structures on your property, like decks and patios, fences, garages, sheds, and pools.
Personal Liability Coverage
If you accidentally injure someone or damage their property, this coverage can help pay for the said individual’s medical care and related expenses as well as any legal actions against you. It also covers your legal defense costs in case you’re sued.
Medical Payments Coverage
Also known as “guest medical insurance,” this provision pays for the medical expenses of guests injured on your property, whether you’re at fault or not.
Living Expenses/Loss of Use
If your home is damaged in a covered loss and uninhabitable, this pays your living expenses while it’s being repaired — up to a set amount per day. The limit applies if you need to move temporarily to another location while repairs are made (also known as “loss of use”).
Exclusions
Homeowners insurance isn’t a solution for everything that can go wrong with your home. There are several common exclusions, and you may have to pay extra to add coverage for other risks. For example:
Intentional damage: If you intentionally damage your own house, you won’t be covered by your homeowners policy. That includes storming out of the house in a rage and breaking a door, kicking holes in the walls, or punching holes in the ceiling.
Homeowners policies typically don’t cover damages as a result of “acts of God,” such as floods and earthquakes, as well. However, if you live near a river or other body of water prone to flooding, your homeowners policy might include coverage for flood damage from sewer backup and seepage through cracks in the foundation.
