What Does Homeowners Insurance Actually Cover?

Your homeowners policy is actually six coverages bundled into one policy. Understanding each one helps you know when you're protected and when you're not.

Coverage A: Dwelling (Your House)

This covers the physical structure of your home — walls, roof, foundation, attached garage, built-in appliances, and permanently installed fixtures.

• What's covered: Fire, lightning, windstorm, hail, explosion, smoke, vandalism, theft, falling objects, weight of ice/snow, accidental water damage from plumbing
• What's NOT covered: Floods, earthquakes, foundation settling, termites, mold (usually), normal wear and tear
• How much: Should equal the replacement cost of rebuilding your home (NOT market value)

Coverage B: Other Structures

Covers structures on your property that aren't attached to your house:

• Detached garage, shed, workshop
• Fence, retaining wall, driveway
• Pool, hot tub, gazebo
• Typically: 10% of your dwelling coverage amount

Coverage C: Personal Property (Your Stuff)

Covers your belongings — furniture, electronics, clothing, appliances, and more:

• Covered: Theft, fire, vandalism, and other covered perils — even away from home
• Sub-limits: Jewelry ($1,500-$2,500), cash ($200), firearms ($2,500), silverware ($2,500)
• High-value items: Schedule expensive jewelry, art, and collectibles separately
• Typically: 50-70% of your dwelling coverage amount
• Important: Choose replacement cost over actual cash value for personal property

Coverage D: Loss of Use / Additional Living Expenses

If a covered loss makes your home uninhabitable, this pays for:

• Hotel or temporary rental costs
• Restaurant meals (above your normal food budget)
• Laundry, storage, and other reasonable expenses
• Duration: Until your home is repaired or you permanently relocate
• Typically: 20-30% of your dwelling coverage amount

Coverage E: Personal Liability

Protects you if someone is injured on your property or you damage someone else's property:

• Guest slips and falls on your property
• Your dog bites a neighbor
• Your child accidentally damages someone's property
• Lawsuits and legal defense costs
• Standard limit: $100,000-$300,000 (consider umbrella insurance for more)

Coverage F: Medical Payments to Others

• Pays medical bills for guests injured on your property — regardless of fault
• Covers immediate medical expenses without a lawsuit
• Standard limit: $1,000-$5,000 per person
• Does NOT cover injuries to you or your household members

What Homeowners Insurance Does NOT Cover

• Floods: Requires separate flood insurance
• Earthquakes: Requires separate earthquake policy or endorsement
• Sewer/drain backup: Requires endorsement (typically $50-$100/year — worth it)
• Maintenance issues: Mold from neglected leaks, pest damage, gradual deterioration
• Home business: Business equipment and liability usually excluded
• Certain dog breeds: Some carriers exclude specific breeds
• Trampoline/pool: Some carriers exclude or require fencing

Bottom line: Your homeowners policy is powerful protection — but it has critical gaps. Understanding what's covered (and what's not) helps you avoid expensive surprises when you need to file a claim. An independent agent shopping 50+ carriers can find the best coverage for your specific situation.