What Home Insurance Actually Covers

By Bonnie Pappas, Mortgage Loan Officer

A standard homeowner’s insurance policy is made up of coverages that may help pay to repair or replace your home’s structure and belongings if they are damaged by certain acts, such as fire or theft. It may help cover costs if you accidentally damage another person’s property or if a visitor is injured at your home. It can also include damage caused by household pets. Insurance for condominiums generally covers your belongings, liability, and certain parts of the interior structure as defined by the condominiums by-laws or lease.

What Does Homeowners Insurance Cover?

  1. Your place of residence
  2. Other structures on your property such as a garage, tool shed, or fence
  3. Personal property, electronics, jewelry, art
  4. Liability for injuries or damage to someone else’s property, or if someone is hurt on your property

Note: You may want to ask about a personal umbrella for additional liability coverages.

You may also be able to purchase additional coverages for greater protection. Typical homeowner’s insurance policies offer coverage for damage caused by fires, lightning strikes, windstorms, and hail. It’s important to know that not all natural disasters are covered by your insurance company. For example, damage caused by earthquakes and floods are not typically covered by your policy.  You may be able to purchase separate insurance policies to help protect your home and belongings against those types of risks. If your home is in a high-risk area for earthquakes or flooding, the lender will mandate that you retain coverage for this type of risk.

Remember there are limits with your coverage and deductibles. Always shop various insurance companies and find the best fit and cost for you.

When purchasing a home, price is not everything, especially if you don’t have the proper coverage. When we work with borrowers we always try to make sure they are getting with professionals so they know what they are getting. If you need an introduction to an insurance agent in your area, your loan officer can direct you.