What Does Homeowners' Insurance Cover?

While homeowners' insurance policies are not all the same, most will cover things such as loss of use and personal property. Specific disasters covered and exclusions will vary on each policy. If you have any questions about your policy, contact your insurance agent. Be aware that there is usually a deductible involved when making a home insurance claim.

Your homeowner's insurance policy will likely have two parts to it.

Part I: Property Protection

The property protection section is usually broken down into four parts:

A. Dwelling

This section covers your house structure, fixtures within the house such as built-in appliances, plumbing, heating and air conditioning, attached structures, and electrical wiring.

B. Other Structures

This section covers any detached structures such as storage sheds and garages and any fixtures attached to the land, include fencing, sidewalks, driveways, patios and retaining walls. If a detached structure is used for business purposes, it will not be covered under a personal homeowner's insurance policy.

C. Personal Property

This section covers personal property including the contents of your home and other personal items owned by those living within your home. This protection may involve replacement cost or actual cash value. You can add extra coverage for these items by adding an endorsement to your homeowner's insurance policy.

D. Loss of Use

This section covers living expenses resulting from the fact that you cannot live in your home.

Part II: Liability Protection

The liability protection section can be broken into two parts:

A. Personal Liability

This section protects against a claim or lawsuit about bodily injury or property damage to others caused by an accident on your property or by your personal activities anywhere. This coverage does not protect auto- and business-related incidents, but it does protect you and all family members who live in the home.

B. Medical Payments

This section covers persons accidentally injured on your property by paying for medical expenses of persons, regardless of fault. However, this does not cover your injuries or any injuries of family members living in the home or activities that involve your home business.

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