Standard homeowners insurance policies typically cover losses resulting from the following:
1. Dwelling Coverage
- The structure of your home: Damage to the house itself – walls, roof, foundation, attached structures like garages or decks. This covers perils like:
- Fire and Smoke
- Lightning Strikes
- Wind, hail, and other storms
- Theft and Vandalism
- Falling objects (trees, etc.)
- Weight of ice and snow
2. Other Structures
- Detached structures on your property: Sheds, fences, gazebos, or a detached garage. Coverage is usually around 10% of the dwelling coverage amount.
3. Personal Property
- Your belongings: Furniture, clothing, electronics, appliances, decor – anywhere in the world. Covered against the same perils as your dwelling, plus sometimes accidental loss.
- Limits and exceptions: Valuable items like jewelry, art, or collectibles may have sub-limits (lower coverage maximums).
4. Liability Coverage
- Injuries and property damage to others: If someone is injured on your property or you/your family cause damage to someone else’s property. Includes legal fees, medical bills, and judgments against you.
5. Additional Living Expenses (ALE)
- Temporary relocation costs: If your home becomes uninhabitable due to a covered event, this covers hotel, food, and other living expenses during repairs.
Common Exclusions (not covered by standard policies):
- Floods: Require a separate flood insurance policy.
- Earthquakes: Also require separate earthquake insurance.
- Neglect and normal wear & tear: Damage caused by lack of maintenance isn’t covered.
- Sewer backup: Sometimes offered as an add-on option.
- War or nuclear events
Important Notes:
- Specific policies vary: Always read yours carefully to understand exact coverages and limits.
- Replacement cost vs. Actual cash value: Affects how much you’re paid out for damaged items (replacement gets you new items, actual cash value factors in depreciation).