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What Does Homeowners Insurance Cover?

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Maria Neira
November 19, 2018

Homeowners insurance provides financial protection for your home and personal items you'd like to protect from any incident. Your policy also protects the homeowner and all who live in the house from being liable for any injuries that may occur. It is important to know what your policy covers and doesn’t, so we've dug a little deeper so you have a better idea.

3 main types of homeowners insurance policies


This homeowners insurance is the basic policy you can get, it includes limited coverage that protects against the following:

  • Fire and lightning
  • Windstorms and hail
  • Explosion
  • Riots
  • Aircraft
  • Vehicles 
  • Smoke
  • Vandalism
  • Theft
  • Glass on the home
  • Volcanic eruption

Anything that is not named above will not be covered under an HO-1 policy.


This policy covers everything from HO-1 and many more including the following:

  • Damage from falling objects
  • Water damage from overflowing plumbing
  • Heating A/C and household appliances
  • Personal property in the home


This policy is the most common because of the wide range of coverage. It covers all perils from HO-1 and HO-2 plus:

  • Damage from electrical currents in appliances or wiring
  • Tear, cracks, and burns in the water heater, A/C or fire sprinklers

Do you know what your homeowners insurance covers?

What homeowners insurance covers?

Below are the standard homeowners insurance coverages by Liberty Mutual and many others. 

Home structure

It is known and called the “dwelling” which is the policy that covers the homes physical damage. It includes the wall, roof, floor or door damages of the home. The home's foundation and other parts of the home that are not visible fall into the category which is still covered. Your policy may also extend to the garage or shed.

Personal belongings

One fact that many don’t know is that your personal belongings are covered no matter where they are in the world, they don’t necessarily have to be in the home. Personal belongings such as furniture, electronics, clothing, silverware, firearms, and jewelry are included. Believe it or not, your trees and plants are also covered in the event of all perils.

Taking pictures and keeping a digital record of your belongings has never been easier with the use of our smartphones. It is difficult to recall all of your personal items in any event; documenting your belongings is critical to getting the most out of your homeowners insurance protection. It is important to let your insurance company know of any valuables you may have, such as jewelry or any expensive artwork in your home.

Take pictures and keep a digital record of your belongings for your homeowners insurance


This coverage protects the policyholder and family under the same roof from lawsuits for bodily injury or property damage that isn’t your fault. It will pay for court costs up to a certain limit. Just like your personal belongings, this coverage protects you and your family if you’re traveling or just down the street at your neighbors. Homeowners insurance even protects your furry friends. Say your dog bites your neighbor, your policy will cover that incident.

This also covers any medical expenses that come about if one of your friends or neighbors is injured in your home, it is called no-fault medical coverage.

Additional living expenses

Additional living expenses (ALE) is part of your homeowners insurance policy that covers the cost of living elsewhere if your home is damaged beyond living conditions. It will cover everything from hotel stays to your daily meals.

The policy varies so yours can cover up to a certain total amount and someone else’s will have their policy cover up to a certain time frame. The coverage for ALE also will reimburse the policyholder if their home is unlivable and still have to pay the rent at the end of the month.

Damage not covered by homeowners insurance

There are two significant instances where homeowners insurance will not cover: earthquakes and floods. There are different insurance products designed specifically for each.

Homeowners insurance will not cover neglect or failure to make on-time repairs, wear and tear, rust, animals or pests, power failure, government action or war.

There are a number of incidents that may damage or destroy your home that homeowners insurance will not cover, including:

  • Hurricanes
  • Mudslides
  • Landslides
  • Sinkholes
  • Pollution

Homeowners insurance can save your wallet from any small incidents to a tragic happening.