What Your Home Insurance Actually Covers

If you’ve paid a mortgage on your home, you probably have homeowners insurance (also called home insurance). While it isn’t legally necessary like auto insurance is, most mortgage companies require homeowners to have it before they ever make a loan. Of course, there are major benefits to home insurance policy. Here’s everything you can expect your policy to cover.

Damage to your home’s interior or exterior

Though many disasters are outdoor events, they can obviously affect the inside of your home. Should your home get damaged in a fire, lightning strike, or simple act of vandalism, your insurer is there to compensate you for home repairs. Just make sure to note what your policy covers. Not all policies cover floods and earthquakes—you may need separate coverage for those.


If you lose your personal belongings in an insured disaster, this section of your policy will also cover that. This can help you replace clothes, furniture, appliances, or any other items. However, if you own lots of fine art or jewelry, you may need to purchase separate coverage for those. 

Personal liability coverage

This type of coverage protects you if another person would file a lawsuit against you. For example, if your neighbor trips and sustains an injury on your property, your insurance covers their medical expenses. The amount of liability coverage you get varies by policy. Some policies only have $100,000 of coverage. Most experts recommend having at least $300,000, but your needs may vary. If you worry about needing more coverage, you can look at more extensive policies that cover more than $1 million.

Temporary dwelling while your home is under repair

If a disaster damages your home, your insurance covers something called additional living expenses. If the disaster forces you out of your home and renders it unlivable, this clause helps make sure you have a place to stay. The “loss of use” clause typically reimburses you for rent or hotel expenses, restaurant meals, and other expenses you face while waiting on home repairs. This part of your policy does come with a limit on your daily and overall expenses though, so make sure you know what’s covered before booking a fancy hotel.

The bottom line is that while most policies cover the above, they’re also easy to customize. If you live in a mining area, you can also add coverage for something like mine subsidence. Plus, the area you live in may have special requirements. This is why it’s important to know what kind of insurance you need. If you shop for what you need, can help you save money on your policy.

The other important thing to remember is to shop around for insurance. Luckily, it’s easier than ever to compare insurance plans to make sure you’re getting the best rate. If you’re ready to start shopping, try a trustworthy comparison website!

You Might Like

Leave a Reply

Your email address will not be published.