What Does Homeowners Insurance Cover?

Dwelling coverage

Dwelling coverage covers the structure of your home, including the walls, floors, windows, and roof. Built-in appliances, such as furnaces, are typically included in your dwelling coverage. An attached garage, porch, or deck would fall under your dwelling coverage, too.

Which events are covered: Most homeowner’s policies cover your dwelling for any cause of damage that isn’t specifically excluded. According to the Insurance Information Institute, some of the most common causes of homeowners insurance claims include wind, hail, freezing, fire, and lightning.

How it works: A severe thunderstorm uproots a tree that falls onto your home, crushing part of the roof and attic. You’d pay your share of the repair cost — known as the homeowners insurance deductible — and then the insurer would pay the rest, up to your dwelling coverage limit.

Other structures coverage

Just like it sounds, other structures coverage provides insurance for structures on your property that aren’t attached to your house. That could include a shed, fence, or detached garage.

Which events are covered: As with dwelling coverage, most homeowners insurance policies cover other structures for any event that isn’t specifically excluded. That means you’d likely have coverage for fire, wind, hail, and snow, among other issues.

How it works: Part of your fence collapses under the weight of heavy snow. The insurance company would pay to repair it, minus your deductible.

Personal property coverage

Personal property refers to your personal belongings — like clothes, furniture, electronic devices, and appliances that aren’t built in. Most homeowners’ policies cover these items anywhere, not just inside your house. So if someone steals your bike from outside a store, it’ll likely be covered (minus your deductible).

Which events are covered: In most homeowner’s policies, personal property coverage works differently than dwelling and other structures coverage. Instead of covering your belongings for anything that isn’t specifically excluded, homeowner’s policies often cover only disasters that are listed.

These events, typically called “perils” in your policy, tend to include:

How it works: A pipe bursts on a frigid winter night, sending water cascading into your kitchen and dining room. Although dwelling coverage would pay for damage to built-in items such as cabinets, personal property coverage would take care of ruined furniture, minus your deductible.

Loss of use coverage

Sometimes called “additional living expenses,” the loss of use a section of your homeowner’s policy can come in handy if your home is too damaged to live in. Loss of use coverage may pay for hotel stays, restaurant meals, or other expenses associated with living somewhere else if your home is uninhabitable after a disaster your policy covers.

Which events are covered: As long as your home is undergoing repairs for a covered claim, you’ll likely be eligible for loss of use coverage. But if your home’s damage is from a disaster that isn’t covered — such as a flood — your insurer won’t pay your additional living expenses, either.

How it works: After a kitchen fire spreads to your living room, your home is out of commission for a few months while contractors make repairs. Your insurance company would pay for you and your family to rent a similarly sized house nearby.

Liability coverage

Personal liability coverage offers financial help if you’re responsible for injuring someone or damaging their property. Coverage generally extends to anyone in your household, including pets — so if your dog bites someone at the park, you may have coverage. (See Does Homeowners Insurance Cover Dog Bites? for more information.)

Which events are covered: Liability insurance covers bodily injury and property damage to others, with some exceptions. For instance, your policy won’t cover criminal acts or harm you cause on purpose. Nor will it pay for injuries or damage from a car accident (your liability car insurance would cover those).

How it works: A delivery person slips on your icy sidewalk before you can salt it. He breaks his wrist in the fall and sues you for medical bills and lost wages. Your liability coverage could pay your legal fees, plus any damages you’re responsible for in the lawsuit, up to your policy limit.

Medical payments coverage

Like liability coverage, medical payments coverage pays if you cause physical injury to someone outside your household. However, you don’t need to be found at fault for medical payment coverage to pay out.

Which events are covered: You could tap your medical payments coverage if someone suffers a minor injury on your property or you cause harm to someone outside your home. Similar restrictions apply to liability and medical payments, with no coverage for intentional acts or car accidents, among other exclusions.

How it works: Your dog bites the hand of a visiting friend. There’s no serious harm, but your medical payments insurance covers the cost of their trip to urgent care for stitches.

What homeowners insurance won’t cover

Even the broadest homeowners insurance policy won’t cover everything that could go wrong with your home. For example, you can’t intentionally damage your house and then expect your insurer to pay for it. Policies also typically exclude damage from other causes such as:

However, you can buy separate coverage for some of these risks. Flood insurance and earthquake insurance are available separately, and in hurricane-prone states, you may need or want windstorm insurance.

Expand your coverage with endorsements

Talk to your insurer if you have concerns about problems your policy doesn’t cover. In many cases, you can add endorsements — which usually cost extra — that offer more coverage.

Below are a few of the most common home insurance endorsements. Note that availability may vary by state and company.

Scheduled personal property covers a specific valuable item such as a ring or musical instrument. You may need an appraisal — a document that states the value of the item — to get this coverage.

Ordinance or law coverage pays to bring your home up to current building codes during repairs or rebuilding.

Water backup coverage pays for damage due to backed-up sewer lines, drains, or sump pumps.

Equipment breakdown coverage pays for heating, ventilation, and air conditioning, or HVAC, systems, and large appliances if they stop working for reasons other than normal wear and tear.

Service line protection pays for damage to water, electricity, or other utility lines that you’re responsible for.

Identity fraud coverage pays expenses associated with identity theft such as lost wages and legal fees.

Broadest coverage: HO-5 insurance

An HO-5 insurance policy offers the most extensive homeowners coverage. It pays for damage to your home and belongings from all causes except those the policy excludes. It’s typically available only for well-maintained homes in low-risk areas, and not all insurers offer it.