What does Homeowner Insurance Cover

What does homeowner insurance cover? The answer to this question will be answered in this article. Homeowner insurance does not cover all the disaster that befalls your house, so as a homeowner, it is important you know what homeowner insurance covers.

What does Homeowner Insurance Cover

Home insurance is a necessity because it safeguards your home and properties from theft and damage. Your home is your asset so safeguarding it should be your priority.

As a homeowner, you need to review your coverage plan to know what it covers and what it does not. A home insurance policy protects your house from accidents and disasters which include weather events, theft, and vandalism.

It also covers your personal belongings, for example, your devices, clothing, and furniture. Also, it provides liability protection against legal action for a bodily injury or a property destruction claim made by a visitor.

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What Homeowner Insurance Covers

Home insurance covers various aspects, but it depends on the type of policy you get. Mainly, homeowners’ insurance covers at least six different coverage

  • Personal property coverage.
  • Other structures.
  • Personal liability coverage.
  • Dwelling coverage.
  • Medical payment.

Personal Property Coverage

This type of coverage covers paying to replace or rebuild properties that are damaged or stolen. It covers your inbuilt personal properties like furniture, clothes, electronic devices, and appliances.

Other Structures

This covers structures on your properties like the fence or shed. It provides insurance for any property of yours not attached to your house.

Personal Liability Coverage

The coverage is applicable when you injure someone or cause property damage unintentionally. It gives you financial assistance if someone should in the long run sue you for the damage to their properties or inflicting injury on them. Personal liability coverage usually extends to anyone in your house. Therefore, if you have a dog, and it happens to bite someone, this insurance got you covered.

Dwelling Coverage

This covers damages to your house and structures like walls, floors, windows, roof, etc. Attached structures like the porch, garage, and deck also fall under dwelling coverage.

Medical Payment Coverage

If you cause harm or injury to someone outside your home, medical payment coverage will cover the expenses.

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Homeowners Insurance Levels of Coverage

While asking what homeowner insurance covers, it is necessary to know the three levels of coverage. Home insurance has three levels of coverage. They include;

Replacement Cost

It covers the actual cash price of your house and properties without the removal of depreciation. This will enable you to repair or rebuild your home to its original value.

Actual Cash Value

This covers the cost of your house, and the value of your belongings after subtracting depreciation. For instance, it covers the current proof of the item and not the price you paid when purchasing it.

Guaranteed Replacement Cost

Guaranteed replacement cost pays for the rebuilding of your house, even if it is more than your policy limit.

What Homeowners Insurance does not Cover

Now that you are aware of what homeowner insurance covers, it is also necessary to know what homeowner insurance does not cover. This is because an insurance policy will not cover everything that could probably go wrong with your house. It does not cover cases like a natural disaster, government actions, and damages from the war. And you cannot damage your house and expect insurance to pay for it.

  • Flood.
  • Sewer backups.
  • Damage from lack of maintenance.


Some insurance policy does not cover natural disasters like flood and earthquakes. So, if your home gets damaged due to the occurrence of a flood, your insurance policy will not cover the damage. You will need different flood insurance to cover the damage.

Sewer Backups

The damages caused by a sewer backup are not covered in an insurance policy. But this sewer backup insurance can be obtained separately.

Damage from Lack of Maintenance

If you do not take care of your home, insurance will not cover any damage issues that arise from a lack of maintenance. For example, pest infestation or mold are not covered by an insurance policy.

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