What Perils are Covered by Homeowners Insurance Policies?

When it comes to protecting your home and belongings, homeowners insurance is an essential tool. Even if your home policy includes comprehensive coverage, there are some situations and events that aren't covered that should be added as endorsements to your home policy or purchased as a standalone policy. In homeowners insurance and other types of property insurance, a hazard refers to an event that causes damage or loss to your property. There are risks covered, that is, the type of damage or loss that the insurance policy covers; and there are dangers that are not covered, also known as insurance exclusions.

It's important to understand what is and isn't covered by your home insurance policy. Generally speaking, a standard home insurance policy will cover damage caused by fire, wind, hail, and many others. However, most policies won't cover damage caused by floods, earthquakes, normal wear and tear, or negligence and poor maintenance. If you need to live somewhere else while your home is being repaired or rebuilt, homeowners insurance may also cover your additional living expenses. Homes located in disaster-prone areas (hurricanes, tornados, and wildfires) may need additional special insurance policies.

Similarly, home insurance covers vandalism and other types of destruction when caused by an outside person. Depending on how complete or limited your home insurance policy is, your home or belongings will be covered depending on the determined risk or the open risk. As an expert in the field of homeowners insurance, I can tell you that it's essential to read your policy in detail and know what it covers. If the government requires you to demolish, repair, renovate, or remodel your home to comply with local building ordinances, the insurance won't cover the costs. A licensed insurance agent might recommend backup water coverage and flood insurance if you're in certain flood areas.

Nearly all homeowners insurance policies protect against multiple hazards, but some homeowners insurance policies only cover the hazards that are specifically mentioned in their policies. It's important to remember that homeowners insurance is designed to protect you from unexpected events such as fire or theft. It's not designed to cover normal wear and tear or negligence on your part. To ensure that you have the best coverage for your needs, it's important to speak with a licensed insurance agent who can help you determine what type of coverage is best for you.