What does homeowners insurance cover?

Answer

The basic structure of a homeowners policy looks like this:

• Coverage A: Dwelling - protects the structure of your home and other structures attached to it. The basic homeowners insurance policy pays you in case of any damage due to fire, and severe storms. Tornados and hurricanes may be covered.

• Coverage B: Other Structures - provides protection for structures or dwellings on your property but not attached to your residence (unattached garage, storage, shed, fencing, boundary etc.)

• Coverage C: Unscheduled Personal Property - covers damage to your personal effects owned or used by you inside or outside the home.

• Coverage D: Loss of Use - reimburses you for expenses you may incur if your home becomes uninhabitable due to a loss covered by the insurance policy.

• Coverage E: Personal Liability - provides coverage if another person brings a claim or lawsuit against you for bodily injury and/or property damage resulting from negligence on your property.

• Coverage F: Medical Payments - provides coverage for medical payments if a third party is injured by or on your personal property.

Very important in the overview is what is NOT covered or what is often limited by contract.

Mold and some related water damage. This is very often specifically limited. Mold damage can be very expensive to repair since it can grow undetected for quite a while before you know you have a problem. Read your policy carefully, especially if you live here in California as well as Texas, Florida, Nevada and Arizona to name just a few problem states.

War, nuclear accidents and terrorism. A local riot would likely be covered but being attacked by terrorist or armies would not. Similarly, if your home is irradiated by a nearby power plant you’re not covered.

Natural disasters If your home burns down in a wildfire and you live in a remote cabin or your home is rattled apart by an earthquake, inundated by a flood you may not be covered. Similarly, if you’re the victim of a landslide, however, you’re pretty much on your own. That kind of “earth movement” usually isn’t covered, so it pays to get a geologists’ report before buying any home near a cliff or on a hill. Both earthquake and flood insurance are available as stand alone coverage.

Neglect If a tree topples over in a windstorm and crushes your house, you’re covered. If your home collapses because of a termite infestation, you’re probably not.

Dogs High risk pets like a Pit Bull, Rottweiler or wolf hybrid may result in your insurance getting very expensive -- if you can persuade your insurer to cover you at all.

Intentional damage Intentional damage by an insured person -- or by the person’s spouse, children or relatives living in the house -- typically isn’t covered. Estranged spouses often come into a gray area. Although they may not live in the home, they may be listed on the policy or the property deed and be considered to have an “insurable interest” in the home.

Computer equipment Most computer equipment is covered but only to a specific limit. If you have a computer for you, your spouse and each of the three kids you should check you policy and consider adding additional coverage above the standard limits.

Luxury items and collectibles (coins, guns, artwork, jewelry etc) Just like computer equipment, most of these items have specific limitation. You can add a rider called Scheduled Personal Property for additional coverage.

First answer by Critmark. Last edit by Critmark. Contributor trust: 290 [recommend contributor]. Question popularity: 18 [recommend question]