What Does Homeowners Insurance Cover?
Homeowners insurance is designed to protect your home and personal property from a variety of risks. Here’s an overview of what it typically covers:
1. Dwelling Coverage
This part of the policy covers the physical structure of your home, including the walls, roof, and flooring, in case of damage from hazards like fire, wind, or vandalism.
2. Personal Property Coverage
Your belongings, such as furniture, electronics, and clothing, are covered against theft and damage. Most policies offer coverage for a percentage of the dwelling coverage amount.
3. Liability Coverage
This protects you if someone is injured on your property or if you accidentally cause damage to someone else's property. It can help cover legal fees and medical expenses.
4. Additional Living Expenses
If your home becomes uninhabitable due to a covered event, this coverage can help pay for temporary housing and other living expenses while your home is being repaired.
5. Other Structures
This covers structures not attached to your home, such as sheds, fences, and detached garages, from risks like fire and storm damage.
6. Endorsements and Additional Coverage
You can customize your policy with endorsements for specific items like expensive jewelry, collectibles, or home-based businesses that may need additional protection.
Understanding these coverage areas can help you choose the right homeowners insurance to protect your home and finances effectively.