Homeowners insurance, also known as home insurance, is a form of property insurance policy that provides coverage for a private residence. A homeowners policy typically covers losses and damages to your personal residence, as well as furnishings and certain other assets within your home. Home insurance may also offer liability coverage against certain types of accidents that occur within your home or on your property. Most mortgage lenders will require a homeowners insurance policy.
Why do I need homeowners insurance?
- Home insurance protects one of your most important investments
- A homeowners insurance policy offers protection against accidents in your home or on your property
- Most mortgage lenders require homeowners insurance.
What does a homeowners insurance policy cover?
Your policy is the best place to review your coverages, but a few common items covered by homeowners insurance are:
Most policies cover damage to your house and any permanent structures on your property for:
- Water damage (unless excluded by your policy)
Protects belongings that were damaged or stolen such as:
- Dishes (in some cases)
Limited coverage for jewelry stolen from your home, (usually $500 – $2,000). You may need special coverage for things in your collection like:
- Engagement rings
- Wedding bands
- Diamond bracelets
What else may be covered by homeowners insurance?
Coverage for extra costs you might have to pay when experiencing a covered loss.
Example: A fire makes your home uninhabitable and you need to temporarily live elsewhere.
What does homeowners insurance not cover?
Here are some coverage examples most standard home insurance policies may not cover:
- Flooding due to natural rising water
- Maintenance issues such as termites and insect damage, rodents, mold, and general wear and tear
- Nuclear hazard
If you live in an area that is high-risk for these types of loss, you may be able to customize your policy to get the coverage you need.
How much coverage do I need?You might need more insurance and not even realize it. Here are some commonly overlooked areas that could be putting you and your family at more financial risk than necessary.