Types of Coverage in Homeowners Insurance Policies: What’s Included and What’s Not

When it comes to financially protecting your home, homeowners insurance can play a crucial role. It can offer financial security by covering various risks associated with owning a house. However, it’s essential to understand both what is covered and what is excluded in your policy.

What Is Covered by Home Insurance?

Homeowners insurance typically offers the following coverages:

• Dwelling coverage—This can financially protect the physical structure of your home, including the walls, roof, floors and built-in appliances. If your house is damaged due to covered perils such as fire, hail or vandalism, dwelling coverage may help pay for repairs or rebuilding.
• Other structures coverage—Beyond your primary dwelling, this coverage can extend to other structures on your property, such as detached garages, sheds or fences. Like dwelling coverage, it offers financial protection against covered perils.
• Personal property coverage—You can financially cover your belongings under personal property coverage up to the policy’s limits. If your belongings suffer damage from covered events, this aspect of your policy can assist in replacing them.
• Liability coverage—Accidents happen, and liability coverage can step in when you’re legally responsible for bodily injury or property damage to others. It may help cover legal fees, medical expenses and settlements.
• Additional living expenses—If a covered loss, such as a fire, renders your home uninhabitable, this coverage can assist in covering the costs of temporary living arrangements, including hotel stays or rental properties.

What Is Excluded from Homeowners Insurance?

A standard homeowners insurance policy typically excludes the following situations:

• Flooding—Homeowners insurance does not cover damage caused by flooding. Separate flood insurance is necessary to financially protect against this peril.
• Earth movements—Earthquakes, land shock waves and other ground movements are typically excluded. However, fire or explosion damage from earth movement may still be covered, depending on the policy.
• Pest infestations—Damage caused by animals (such as termites or rats) is not covered unless it occurs under rare circumstances.
• Mold or wet rot—Homeowners insurance excludes damage resulting from mold growth or wet rot. Preventative maintenance is crucial to avoid these issues.
• Wear and tear—Normal wear and tear, as well as neglect, are not covered. Regular maintenance is essential to keep your home in good condition.
• Power surges—If a power surge damages your appliances or electronics due to utility company issues, it’s generally not covered.
• Local building ordinance or law—If you need to upgrade your home to meet new building codes after a covered loss, this cost is typically excluded.
• Intentional damage—Any damage caused intentionally by you or someone else is not covered.

Homeowners Insurance in Houston, TX

Policy specifics can vary, making it essential to review your policy and consider additional endorsements or riders to address specific exclusions. Consult with an agent at Amco Auto Insurance to tailor coverage to your needs.

This blog is intended for informational and educational use only. It is not exhaustive and should not be construed as legal advice. Please contact your insurance professional for further information.