What Does Homeowners Insurance Actually Cover?

If you’ve made the choice to invest in a home, you’ll want to take every measure possible to protect that investment. Whether you own your home outright or have a mortgage, homeowner’s insurance is essential. The right policy can protect you and your family from various issues that could result in serious financial loss, but how do you know if you’re picking the right plan? Here’s what you need to know about homeowners insurance to ensure that you’re able to protect your house while getting a great deal. 


What is Homeowners Insurance?

Think about all of the things that could happen to your house. This can be something as small as a busted window or it could be as big as fire damage from an uncontrolled flame. Protection against theft is another common reason why people turn to insurance companies. Homeowners insurance exists to give homeowners peace of mind that they won’t go broke if something bad happens to their property. Insurance policies vary, but in general, they work to cover the cost of repairs, replacements, and even situations where someone gets hurt on your property.


What’s Covered?

Every homeowner’s insurance policy is different which is why you need to understand what is and isn’t covered before signing a contract.

  • Personal property – this is typically accounted for in a homeowner’s insurance policy, sometimes known as contents insurance and it helps you in case you lose valuable items to theft or damages. However, if you have high-value items like jewelry or artwork, you might need additional coverage. 
  • Natural disaster coverage – the type of coverage available to you will depend on where you live. For example, if you live in a coastal area, you might not be eligible for flood insurance. Most plans will cover events like lightning, windstorms, and hail. 
  • Fire coverage – standard policies typically include some level of fire protection since house fires are one of the leading causes of damage to homes. 
  • Personal injury – accidents happen, which is why personal injury coverage is a must. If someone slips and falls on your driveway or gets hurt as the result of a loose porch railing, you could be liable. Just be aware that this coverage is usually limited to a specific dollar amount. 


What’s Not Covered? 

Unfortunately, homeowners insurance coverages can’t account for everything that could happen to your home. Here are a few of the major areas to look out for when picking your plan: 

  • Floods – most standard policies do not cover floods and you will need to get additional insurance if this is a hazard you expect your home might face someday. 
  • Earth movement – natural disasters like sinkholes, earthquakes, and landslides are not part of a typical homeowner’s insurance. Residents in places like California, Florida, and Oklahoma often seek out separate policies for these events. 
  • Canine attacks – sorry dog lovers, your homeowner’s insurance won’t foot the bill if you own a specific breed of dogs, such as a German Shepherd or Pit Bull. 



How to Lower Your Insurance Costs 

There are a few easy ways to lower the cost of your insurance policy and save a little extra cash. If you live in a disaster-prone area, consider investing in storm shutters and reinforcing your roof. You can also protect your home by installing and maintaining fire alarms and security systems. Insurance companies look favorably on houses that are well-equipped to handle common mishaps. 


If you’re curious about what your homeowner’s insurance policy could cover, contact one of our friendly team members at American Tri-Star Insurance today. We’re happy to help you find the best policy for your home so you can have total peace of mind.