What does a basic homeowners insurance policy cover?

A basic homeowners insurance policy typically provides a range of coverages designed to protect homeowners against various risks. These coverages generally include:

1. Dwelling Coverage: This part of the policy covers the cost of repairing or rebuilding your home if it’s damaged by certain risks like fire, hail, wind, or vandalism. It’s important to ensure that the coverage limit is enough to rebuild your home at current construction costs.

2. Other Structures Coverage: This coverage applies to structures on your property that are not attached to your house, such as a detached garage, shed, or fence. It protects against the same types of risks as dwelling coverage.

3. Personal Property Coverage: This helps cover the cost of replacing your belongings, such as furniture, electronics, and clothing, if they’re stolen or destroyed by a covered risk. There are limits on certain types of personal property, so you may need additional coverage for items like jewelry or fine art.

4. Liability Protection: If someone is injured on your property, or you or a family member (including pets) cause damage to someone else’s property or injury to others, liability coverage can help pay for your legal defense and any court awards, up to the limit of your policy.

5. Medical Payments to Others: This coverage can help pay for medical expenses for guests who are injured on your property, regardless of who is at fault. It does not cover health care costs for you or other household members.

6. Loss of Use (Additional Living Expenses): If your home is damaged due to a covered peril and you cannot live in it during repairs, this coverage can help pay for temporary living expenses, such as hotel bills and meals.

It’s important to read your policy carefully to understand what is and isn’t covered, as policies can vary significantly. Some events, like floods and earthquakes, typically aren’t covered by standard homeowners insurance policies and may require separate policies.