What Is Covered by Home Insurance?

Homeowner’s insurance covers you financially if your house or its contents are damaged or destroyed. A homeowner’s policy will pay for repairs and replacements as well as rebuilding costs.

Legal liability is another important area that homeowner’s insurance covers. If you are sued by a guest who injures themselves or for property destruction, your insurance policy can cover legal fees and damages awarded.

Below is an explanation of the most common things that homeowner’s insurance does cover, as well as what it does not.

What Does Homeowner’s Insurance Cover?

Your Building Is Covered

In the face of a fire, flood, natural disaster, or another unexpected event, your homeowner’s policy from a provider like APOLLO Insurance will pay for the repair and rebuilding of your home.

A homeowner’s policy can also pay for extra living expenses like lodging in a hotel or rental costs, if your home is damaged by a fire. It usually covers damage from vandalism or hail storms as well.

Your Personal Items Are Protected

Your belongings within your home are also protected by homeowner’s insurance. If you must rebuild your house and replace all your personal items, contents insurance can help cover things like your furniture and electronics. These items are also covered by homeowner’s insurance if there is a home invasion.

Contents insurance can be further subdivided into cash value and replacement-cost. The replacement-cost coverage provides compensation to replace what was lost or stolen. It does not account for depreciation.

Coverage for actual cash value, on the other hand, does consider depreciation. The amount you get to replace your stolen television that you purchased years ago might not be sufficient to buy a new one today.

You Have Liability Coverage

Imagine you have friends or family over to your home and someone falls on your front porch. You could be held responsible for serious injuries. They could sue you if they are harmed by your slippery deck.

The liability coverage in your homeowner’s insurance can help cover any legal fees and damages awarded in this type of situation, which can help you shoulder unexpected financial burdens.

What Does Homeowner’s Insurance Not Cover?

Negligence that Leads to Damage

Insurance does not cover damage caused by your negligence, or the natural deterioration of your home. Examples may include pest infestations, mold, or a burst pipe. Although these problems can cause serious issues for your house, they are often caused by homeowners neglecting to care for their property.

Extreme Natural Disasters

Insurance companies are reluctant to provide full coverage for certain circumstances, such as earthquakes, landslides, and sinkholes.

Some providers offer separate policies that cover extreme events. For example, in regions that are prone to earthquakes, like California, insurance for this type of disaster can be necessary.

Backup of Sewers

Sewer backup is possible when there is significant rainfall, snow that’s melting, or flooding within a house that’s been caused by blocked lines. Flood damage can occur to basements and other areas. Depending on the cause of the backup, repair costs could be yours or those of your localities.

Most policies for homes don’t cover sewer backup. However, your insurance provider might offer a separate policy if you’re looking for this type of coverage.

High-End Artwork and Jewelry

There are some caveats to contents insurance. You will need separate coverage for expensive items, such as jewelry and artwork. These items are often what thieves are looking for and, therefore, it’s a good idea to cover them.

Equipment for Business

Your home insurance will not include assets if you are a business owner. Your policy may not cover you if your office is damaged or burns down. You would instead need a company insurance plan.

As a homeowner, insurance should be a mandatory policy. If your house becomes damaged or destroyed, it can help ensure that you don’t come to financial ruin. You can also get coverage if someone sues you or steals from you. It is important to know what homeowner’s insurance does and does not cover, so you can find the right policy to fit your needs.