Why Homeowners’ Insurance Is a Must-Have
Homeowners’ insurance isn’t just another expense—it’s a crucial safety net for your biggest investments. The right policy protects your home, your belongings, and even takes care of unexpected costs like injuries to guests or extra living expenses if something like a fire makes your home temporarily unlivable.
Understanding what’s included in a homeowners’ insurance policy can bring peace of mind—and might even encourage you to explore additional coverage for better protection.
Homeowners’ Insurance: The Basics
Think of homeowners’ insurance as a deal between you and your insurance company. In exchange for your premiums, they promise to cover costs related to damage or theft affecting your home and personal property.
What’s Actually Covered?
The most common type of policy, known as an HO-3, provides broad protection for your home and its structure. It covers everything except the specific problems or situations listed as exclusions in the policy.
For your personal belongings, coverage applies if the damage comes from specific “perils”—essentially the risks or hazards that insurance policies are designed to protect against. Typical HO-3 policies list these perils clearly, so you’ll know exactly what’s covered.
By having a good grasp of what’s included, you can feel more secure in your coverage—or decide to enhance it for even greater peace of mind.
Why Homeowners’ Insurance is Essential
Homeowners’ insurance is your go-to protection for life’s unexpected curveballs, covering some of your most valuable assets. A good policy shields you from damages caused by events like fire, theft, or storm damage. The most common covered incidents include:
- Water or steam overflow from appliances or pipes
- Damage from aircraft or even spacecraft
- Explosions
- Falling objects
- Fire or lightning strikes
- Freezing pipes or systems
- Riots or civil commotion
- Smoke damage
- Electrical surges causing sudden damage
- Cracking, tearing, or bulging of home systems
- Theft or vandalism
- Vehicle damage
- Heavy snow, ice, or sleet causing structural strain
- Windstorms or hail
- Volcanic eruptions
For even more comprehensive coverage, consider asking about an HO-5 policy or a similar option. These policies typically cover your home and personal belongings for anything not explicitly excluded—perfect for peace of mind.
Does Homeowners’ Insurance Cover Mold?
Mold coverage depends on the policy and the cause. Generally, sudden and accidental water damage, like a burst pipe, is covered. However, mold from long-term leaks or poor maintenance usually isn’t.
For example, if a pipe suddenly bursts and mold follows, that’s likely covered. But if mold grows from a slow, ignored leak, don’t expect coverage.
Does Homeowners’ Insurance Cover Roof Leaks?
Roof leaks caused by sudden, unexpected events—like a severe storm—are usually covered. However, if the roof damage results from neglect or a lack of maintenance, you’re likely on your own.
Does Homeowners’ Insurance Cover Plumbing?
Plumbing-related damage is covered when it’s sudden and accidental, such as a pipe bursting or a fire. On the other hand, routine wear and tear, preventable leaks, or frozen pipes in unheated spaces won’t be included. If you want protection against sewer or sump pump backups, you’ll need to add that to your policy.
Does Homeowners’ Insurance Cover Foundation Repairs?
Foundation issues caused by unexpected problems are often covered, such as:
- Burst pipes or sudden water damage
- Trees or other objects falling onto your home
- Fires, wildfires, or lightning strikes
- Tornadoes, windstorms, or explosions
- Smoke damage
- Vandalism
Routine wear and tear or gradual settling of the foundation are typically not covered.
Does Homeowners’ Insurance Cover Termite Damage?
Termite damage is rarely covered because it’s usually preventable through regular maintenance. However, there are exceptions. If termites directly cause a covered problem—like chewing through wires and starting a fire—your policy may cover the fire damage. Similarly, if a sudden issue like a burst pipe attracts termites, the related damages might also be covered.
Stay Protected with the Right Coverage
Homeowners’ insurance is a safeguard against life’s unpredictable moments. Knowing what’s covered—and when to ask about additional coverage—ensures you’re prepared for the unexpected while protecting your home and everything in it.
What Does Homeowners’ Insurance Cover?
Fires
Accidental fires are usually covered by homeowners’ insurance, offering financial protection for your house and belongings.
Here’s how coverage works for fire-related damage:
- Dwelling Coverage: Repairs or rebuilds your home.
- Other Structures Coverage: Includes sheds, fences, and detached garages.
- Personal Property Coverage: Replaces damaged belongings.
- Additional Living Expenses (ALE): Covers temporary living costs while your home is repaired after a covered disaster like a fire or tornado.
Tree Removal
Removing trees to prevent potential damage isn’t typically covered by homeowners’ insurance—you’re responsible for dealing with leaning, dead, or rotting trees.
If a neglected tree falls and damages your home, insurance might not pay because maintenance issues like removing dead trees fall under the homeowner’s responsibility.
However, if a storm or another covered event knocks down a tree, your policy could help with removal costs, up to a limit (e.g., $500 or $1,000). For instance, if a windstorm topples a tree onto your driveway, your insurer may cover part of the cleanup costs.
Water Damage
Water damage is covered if it results from sudden and accidental events, such as:
- Burst pipes or appliance leaks
- Ice dams
- Storm-related water damage
- Water damage caused by a fire
But some issues won’t be covered, including:
- Damage due to neglect or poor maintenance, like ignoring a plumbing issue.
- Floods, landslides, or mudslides.
- Foundation leaks or seepage.
- Sewer backups (unless you’ve added extra coverage).
- Sump pump failures.
- Leaks from a swimming pool.
Remember, homeowners’ insurance helps with the damage caused by water but doesn’t cover fixing the source, such as repairing a broken dishwasher.
Roof Replacement
Homeowners’ insurance generally covers roof replacements caused by:
- Storms with strong wind or hail
- Falling objects like a tree branch
- Fires or lightning strikes
- Vandalism
- Snow or ice causing structural damage
But wear and tear, neglect, or damage from termites, rodents, mold, or aging roofs won’t be covered. Earthquakes are also excluded unless you have a separate policy.
Theft
Most homeowners’ policies cover theft, but limits apply. Personal property is typically insured for 50%–70% of your dwelling coverage, but specific high-value items like jewelry may only be covered up to a certain amount (e.g., $1,500).
For valuable items, consider adding scheduled personal property coverage (also called a floater or endorsement) to extend coverage for things like jewelry, art, or other high-value possessions. This ensures adequate protection beyond the standard policy limits.
Key Takeaway
Understanding the details of your homeowners’ insurance policy can make all the difference in being prepared for life’s unexpected challenges. From fires to theft and storm damage, knowing what’s covered (and what isn’t) helps you make informed decisions about your coverage and any extra options you might need.
Does Home Insurance Cover Porch Pirate Thefts?
Yes, most homeowners’ insurance policies cover stolen packages from your porch. This type of coverage falls under personal property protection. However, you’ll need to provide proof that the package was delivered and then stolen. Tracking information and video footage (like from a Ring camera) can often help back up your claim.
If the package was lost during shipment, that’s a different story. In those cases, the responsibility typically falls on the sender, not your home insurance policy.
What Disasters Are Covered by Homeowners’ Insurance?
Homeowners’ insurance generally covers storm and wind damage in most areas. However, if you live in a hurricane-prone region, be aware that a separate hurricane deductible might apply when filing a claim.
Flooding, unfortunately, isn’t covered by standard policies. If you want protection against flood damage, you’ll need to purchase a dedicated flood insurance policy. Similarly, earthquake damage isn’t included in typical coverage, but you can buy separate earthquake insurance if necessary.
What Isn’t Covered by Home Insurance?
There are some notable exclusions in standard homeowners’ insurance policies:
- Earth Movement: This includes earthquakes, sinkholes, mudslides, and tremors from volcanic activity.
- Government Action: Damage or confiscation by government authorities.
- Neglect: Issues caused by failing to maintain your home properly.
- Intentional Damage: Any damage caused intentionally by you or household members.
- Nuclear Hazards and War: These are typically excluded.
- Power Failures: Damage from off-property power outages isn’t covered. However, if the outage is caused by something on your property, resulting damage might be included.
- Water Damage: This includes floods, sewer backups (unless additional coverage is purchased), or pool leaks.
Key Coverage Types in a Homeowners’ Insurance Policy
Dwelling Coverage
Dwelling coverage helps pay for the repair or rebuilding of your home if it’s damaged by a covered event, like fire or storm damage. This protection applies to the main structure of your house.
Other Structures Coverage
In addition to your home, coverage extends to other structures on your property. This includes attached spaces like decks or garages, as well as detached structures like sheds or fences, though these are usually covered under a separate “other structures” category.
Personal Property Coverage
This coverage helps replace or repair your belongings, such as clothing, electronics, furniture, or even cookware if damaged or stolen due to a covered event.
Coverage limits typically range from 50% to 70% of your dwelling insurance amount. For example, if your home is insured for $300,000, you might have $150,000–$210,000 in personal property coverage.
To ensure adequate coverage:
- Assess how much it would cost to replace everything you own in a worst-case scenario.
- Create a home inventory with descriptions, estimated values, purchase dates, and receipts (if available). Photos and videos are also helpful.
For high-value items like jewelry, electronics, or musical instruments, policies often have specific payout limits (e.g., $1,500 for jewelry theft). If needed, you can add extra coverage—called “scheduling”—to protect these pricier belongings.
Liability Insurance
Liability coverage protects against lawsuits or claims if someone gets injured on your property or if you accidentally cause damage to someone else’s property.
Pro Tip: Tailor Your Policy for Better Protection
Standard homeowners’ insurance offers great baseline coverage, but customizing your policy with add-ons (like flood or earthquake insurance) and ensuring adequate limits for valuable items can provide peace of mind.
Liability Insurance
Liability insurance steps in to cover the cost if you or someone in your household accidentally causes injury or damage to someone else. It also helps with legal fees if you’re sued for a covered incident. Here are a few everyday scenarios where liability coverage might come in handy:
- A guest slips on your icy walkway and gets hurt.
- Your dog bites someone or damages their property, like a neighbor’s fence.
- Your child accidentally breaks a neighbor’s window with a stray baseball.
Most policies start with $100,000 in liability coverage, but higher amounts are available. For those with substantial assets, it’s smart to consider umbrella insurance for extra protection. It’s surprisingly affordable—about $380 per year for $1–2 million in coverage, according to Trusted Choice.
Medical Payments to Others
This coverage is like a quick fix for minor injuries that happen on your property. If a guest gets hurt, it helps pay their medical bills without the drama of legal battles. Coverage amounts are usually modest, ranging from $1,000 to $5,000. For more significant claims, liability insurance kicks in to handle the bigger costs.
Loss of Use Coverage (Additional Living Expenses)
When your home becomes unlivable due to a covered disaster (like a fire), loss of use coverage is there to ease the burden. It reimburses for extra expenses, such as hotel stays, dining out, laundry services, or even boarding your pets.
The coverage limit is often set as a percentage of your dwelling coverage. For instance, if your dwelling coverage is $300,000 and the loss of use limit is 30%, you’d have up to $90,000 to cover temporary living costs. Need more? Many policies let you increase the limit.
Levels of Dwelling Coverage
- Replacement Cost Coverage
This covers the cost to repair or rebuild your home using materials similar to what you had before the damage occurred. Make sure your dwelling coverage is enough to completely rebuild your home in case of a total loss. - Extended Replacement Cost
Provides extra funds (typically capped at 25% more) to cover unexpected increases in rebuilding costs, like spikes in labor or material prices. - Guaranteed Replacement Cost
This is the gold standard. It covers whatever it takes to repair or rebuild your home, even if costs exceed your dwelling coverage. However, not all insurers offer this level of protection.
Personal Property Coverage Options
When it comes to replacing your belongings, you’ll have two main choices:
- Replacement Cost Coverage: Pays for new items similar to the ones lost or damaged, without factoring in depreciation.
- Actual Cash Value: Takes depreciation into account, meaning you’ll receive less for older items.
Opting for replacement cost coverage can ensure you’re not left paying out of pocket to replace essential items after a disaster.
A Quick Tip: Tailor Coverage to Fit Your Needs
From umbrella insurance for added liability to extended dwelling coverage for unforeseen costs, customizing your policy can help you stay prepared for life’s surprises. And with options for medical payments and loss of use, you can keep stress at bay when the unexpected strikes.
Protect your biggest investment with the Alexander Insurance Agency of St. Charles—your go-to partner for reliable homeowners’ insurance. We’re here to make it easy to protect your home, your belongings, and your peace of mind. Whether it’s fire, theft, storms, or even plumbing surprises, we offer customizable coverage tailored to fit your needs and lifestyle.
Concerned about gaps in coverage? Our team is ready to walk you through options like flood insurance or extra protection for high-value items. Don’t wait for the unexpected—reach out to Alexander Insurance Agency today and let’s create a solid plan to keep your home and future secure.