What Does a Standard Homeowner’s Insurance Policy Cover?

A necessary part of being a homeowner is having a homeowner’s insurance policy. Unfortunately, the average person may not understand what their homeowner policy actually covers. An uninformed homeowner may end up with inadequate coverage for their home since they do not know the specific terms to look for.

Use this guide to become better informed about your coverage.

Terms of a Standard Homeowner’s Insurance Policy

Simply put, homeowner’s policies ensure that your home will be repaired or replaced in the event of damage. A standard policy typically covers damage caused by fire, smoke, fallen trees, plumbing issues, storms, and theft.

However, there are certain things that are not covered by a standard homeowner’s insurance policy. For example, flood damage is not included in a standard policy. Damage from floods and earthquakes is typically covered by separate policies entirely.

Wildfire protection also falls into this category and is determined by the level of risk in the area where the home is located. Some policies cover other types of damage, including mold, foundation damage, and roof replacement, but these types of coverage are not standard. Some insurers may not provide this type of coverage at all, so it is important to be specific and ask your agent any and all clarifying questions.

couple moving in

What Does Homeowner’s Insurance Provide?

If an event covered by your policy damages or destroys your home or valuables, homeowner’s insurance should cover you. It will also protect you if you cause injury to someone else or, in certain circumstances, cause property damage. Homeowner’s insurance has four primary functions:

  • To make necessary repairs to your home, yard, and other structures.
  • To repair or replace your personal belongings
  • To provide for other living arrangements while repairs occur
  • To cover personal liability if you’re held legally accountable for someone else’s property damage or injury

homeowners insurance

What are the Types of Coverage?

A standard homeowner’s insurance policy can be broken down into six types of coverage, which help ensure that you and your home are wholly protected from potential damage and other threats.

  1. Dwelling coverage ensures that the home itself is protected. This coverage will cover the costs to repair or rebuild the home, depending on the total amount of damage and your coverage costs.
  2. Other structures coverage ensures that fences, garages, outdoor sheds, and guest houses will be repaired or rebuilt in the event of damage.
  3. Personal property coverage includes items that are stolen or vandalized, mainly furniture, appliances, and electronics.
  4. Loss of use coverage covers expenses in the event your home needs to be rebuilt and you are required to stay elsewhere (i.e. hotels, restaurants, rentals).
  5. Personal liability coverage covers others’ medical bills and hospital costs in the event you are found liable as the homeowner.
  6. Medical payment to others coverage covers minor medical costs due to injuries, not taking into account who is at fault.

How Can We Help?

Homeowner’s insurance is a vital part of owning a home. At GWK Insurance, our agents know that the ins and outs of a policy can be overwhelming at times, but we are here to walk you through the entire process. If you are a homeowner searching for a new policy, we would love to partner with you on this journey. Contact us at any time, and let us know how we can help.