What does homeowners insurance usually cover

Although homeowners insurance is not required by law, if you have a mortgage your lender will require homeowners insurance to protect the home. If you live in a disaster-prone area , you may need additional coverage. Homeowners insurance protects the dwelling , your personal belongings , and offers personal liability coverage for injuries that happen on your property. Additionally, homeowners insurance provides "loss of use" in the event you need to temporarily relocate because your home is unlivable.

Damage to your home and belongings must be from " insurance perils. The type of homeowners insurance you need depends on the type of home you purchased: condo, townhome, single family, rental, or mobile home. Your coverage will vary based on the type of policy you have. Dwelling coverage is the part of a homeowners insurance policy that can help cover the cost to repair or rebuild your home if it is damaged. Your dwelling consists of your home and any "other structures" on the property, like a garage or shed.

The type of dwelling coverage you have depends on the type of homeowners insurance policy. Your possessions are covered from damage or theft under personal property coverage. Specialty items like high-end electronics, special jewelry , furs, fine arts, firearms, and cash may not be covered. According to Steve Wilson, senior underwriting manager at Hippo Insurance , these items may need a "personal article" endorsement or add-on rider.

Homeowners insurance offers homeowners personal liability protection if someone is injured at your property pet bites or sues for damages. Some carriers offer identity theft and cyber liability as part of their personal liability coverage or as an add-on rider. There are limits to standard personal liability coverage depending on your policy and insurance carrier.

Having certain items — like a pool or trampoline — can increase your liability as a homeowner. Also, exotic pets and certain dog breeds are excluded from some homeowners insurance policies. Some homeowners insurance companies will not offer coverage based on the size and breed of the dog, especially large dogs and breeds considered to be aggressive. In order for "loss of use" to be triggered, the damage must be related to a peril or covered event in the policy. Don't assume that your insurance carrier will pay additional living expenses, because the definition of inhabitable varies by company.

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The best online brokerages for beginners. The best investment apps. The best stock trading apps. Best robo advisors. Average stock market return. Car insurance. Life insurance. Best cheap car insurance. This coverage could help pay for expenses after your identity is stolen. Identity theft coverage may pay for legal fees, lost wages and notary costs associated with restoring your credit. Other structures coverage comes standard with most home insurance policies and covers structures on your property that are not attached to your house, like fences and sheds.

For example, if a windstorm damages your detached garage, your other structures coverage may pay for the repairs. Similarly, other structures coverage may extend to barns, detached garages, privacy fences and gazebos. Your deductible does apply to this coverage, though, so be prepared to pay a portion of any claim out of pocket. Personal liability coverage can help cover legal and medical expenses if your pet injures someone who does not live with you, like a guest, neighbor or mail carrier.

Personal liability coverage is included standard on most home insurance policies. According to the American Veterinary Medical Association, more than 4. A dog bite is a serious injury and can lead to expensive medical and legal bills. Pets can injure people in other ways, as well, such as knocking someone down. If your pet injures someone, your liability coverage might help pay for the medical bills and legal fees if you are sued.

However, not all companies automatically cover liability for pets. Certain dog breeds and exotic pets are often excluded from coverage. You may want to confirm with your insurance company if pet liability coverage is included in your policy. If you experience damage to your home that is significant enough, you may need to find temporary accommodation while your home is repaired.

Fortunately, most standard homeowners policies include loss of use coverage, also known as additional living expenses coverage. Following a covered loss, your additional living expenses coverage could help to pay for expenses associated with a temporary living situation. This could include hotel bills or the cost of a temporary rental home, laundromat fees and other expenses that may come up.

Liability coverage is included on most standard homeowners insurance policies. If you entertain often, have children who like to host sleepovers or if your home has a potentially dangerous feature, like a swimming pool or trampoline, you may want to consider increasing your liability coverage. You can even get more liability coverage by purchasing an umbrella insurance policy.

Most standard homeowners insurance coverage includes damages caused by falling objects. If a meteorite falls from the sky and crashes into your home, your dwelling coverage could cover the damages.

However, you might want to read your policy terms carefully to know exactly what types of perils are covered and which ones are excluded. There are several different kinds of homeowners insurance policy forms , and each includes different coverages.

The details about the specific coverages and exclusions on your homeowners insurance policy are included in your full policy form, which may have been mailed to you when you purchased your policy.

If you have an online account with your company or have signed up for a paperless option, you may also be able to obtain your full policy online. If you have any questions about your homeowners insurance coverage, your insurance company or your agent should be able to help. If you want to add a coverage option to your homeowners insurance policy, like identity theft protection, you can start by contacting your insurance provider to see if it offers the coverage you are looking for.

You may be able to simply add the option to your policy. If you are not able to get the coverage you want with your current company, you may want to consider changing insurance providers.

Home insurance is designed to primarily cover sudden and accidental damage. Any damage that is ongoing or intentional is likely to be denied. For example, if you have a slow water leak that you put off repairing, your home insurance will not likely cover the water damage.

Most home insurance policies also do not cover flood damage or earthquake damage without an endorsement. And if you run a business from your home, you probably need additional coverage.

The best homeowners insurance company for you depends on your specific rating factors, like the age of your house, its location, your coverage needs, your budget and more. Your furniture, clothes, sports equipment and other personal items are covered if they are stolen or destroyed by fire, hurricane or other insured disasters. The coverage is generally 50 to 70 percent of the insurance you have on the structure of the house.

The best way to determine if this is enough coverage is to conduct a home inventory. Personal belongings coverage includes items stored off-premises—this means you are covered anywhere in the world. Some companies limit the amount to 10 percent of the amount of insurance you have for your possessions.

Expensive items like jewelry, furs, art, collectibles and silverware are covered, but there are usually dollar limits if they are stolen. To insure these items to their full value, purchase a special personal property endorsement or floater and insure the item for its officially appraised value.

Trees and plants are not covered for disease, or if they have been poorly maintained. Liability covers you against lawsuits for bodily injury or property damage that you or family members cause to other people.