What Does Your Homeowner's Insurance Really Cover?

Learn key protections, common gaps, and how to fill them.

Protection Essentials

Dwelling Coverage:

  • Covers the physical structure of your home (walls, roof, foundation).
  • Includes attached structures like garages or decks.
  • Typically for perils like fire, windstorms, vandalism (check policy for specifics).

Personal Property Coverage:

  • Protects your belongings (furniture, clothes, electronics).
  • Coverage can be worldwide, not just at home.
  • Exclusions often apply to high-value items (jewelry, art) unless specifically scheduled.

Liability Protection:

  • Covers bodily injury or property damage you or family members cause to others.
  • Includes legal defense costs if you're sued.
  • Applies both on and off your property.
Common Coverage Gaps

Wildfire & Natural Disaster Limits:

  • Policies in high-risk areas may have separate deductibles or lower limits for specific perils like wildfires or hurricanes.
  • Coverage might not cover current rebuilding costs.

Typically Not Included by Default:

  • Flood Damage: Requires a separate flood insurance policy.
  • Earthquake Damage: Usually needs a specific endorsement or separate policy.
  • Sewer Backup & Sump Pump Overflow: Often excluded unless an endorsement is added.
  • Mold Remediation: Coverage is typically limited or excluded.

Additional Considerations:

  • Personal Umbrella Policy: For liability coverage above your standard policy limits.
  • Additional Living Expenses (ALE): Understand the limits and duration if your home is uninhabitable.
How to Read Your Policy

Key Terms to Understand:

  • Declarations Page: Summary of your coverage, limits, deductibles, and policy period.
  • Limits: The maximum amount your insurer will pay for a covered loss.
  • Deductibles: The amount you pay out-of-pocket before insurance kicks in.
  • Endorsements/Riders: Additions or modifications to your standard policy (e.g., for jewelry, home business).
  • Exclusions: Perils or situations not covered by your policy.

Quick Checklist for Critical Sections:

  • Verify Dwelling Coverage (Coverage A) amount.
  • Check Personal Property (Coverage C) limits and type (Actual Cash Value vs. Replacement Cost).
  • Note Liability (Coverage E) limits.
  • Review all deductibles (standard, wind/hail, hurricane, wildfire).
  • Carefully read the Exclusions section.
  • Look for any Endorsements that modify your coverage.
“I found a $50K gap in my wildfire coverage—PolicyReviewPro saved me!”

— Jane D., LA homeowner

2,500+ homeowners served

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