What Does Homeowners Insurance Cover?

The standard homeowners insurance policy will provide coverage to replace or repair your home and what’s inside your home if they become damaged or destroyed. The damage that is typically covered can include fire, theft, vandalism and smoke. Other damage that is usually covered can be hail, lightening, and wind. If a tree unexpectedly falls on your home or fence, there’s a good chance that may be covered as well.

Homeowners insurance will also proved coverage for your heating and cooling devices. Other items that may be covered are kitchen appliances, furniture, clothing, and other items in and around the home. Your homeowners insurance policy will also extend to the detached structures around the home such as garages, gazebos, sheds, a barn, outdoor grills, fireplaces, swing sets, walls, and fences. Theres also a chance a swimming pool will be included as well, but please keep in mind that a swimming pool also creates more risks so they may cause you to see an increase in your homeowners insurance premium.

Your homeowners insurance policy will cover you for additional living expenses as well. If you are forced from the home while it undergoes repairs or is being rebuilt you may be able to get reimbursed for the costs you spend while away from the home. For example the Additional Living Expenses portion of your homeowners insurance may cover the cost of eating out or hotel stays. It can also reimburse you for lost rental income if you have a tenant renting a portion of the home.

Homeowners insurance policy details

You should know and understand the details of your homeowners insurance policy. It’s always good to know the amount of coverage you’ll have if you are forced to repair or rebuild the home. Your mortgage lender can occasionally only require sufficient coverage to pay the loan off. In most cases that may not be enough to rebuild the home how you would want it. 

Other factors to keep in mind are the increases in the costs to rebuild a home. In 2021 we’ve seen a fairly dramatic increase in the cost of lumber and other building materials. If the cost to rebuild a home goes up it could get to the point of your coverage coming up short in the rebuild process. Which makes it a good idea to reevaluate your coverage every year to make sure you have enough homeowners insurance coverage to rebuild or repair the home after the increase in building material cost. 

The other option you have is to choose a replacement cost homeowners insurance policy versus a cash value homeowners insurance policy.

Replacement cost homeowners insurance; Often referred to as RCV, replacement cost value is the amount of money it will take to fully replace the home with the exact specifications or a very similar home in the current market. Replacement cost does not consider depreciation. 

Actual cash value homeowners insurance coverage; The actual cash value within your homeowners insurance policy is based off the market value or the initial cost of the home and personal belongings, taking depreciation in mind. The majority of homeowners insurance policies will cover the replacement cost of the homes structure and the actual cash value of the insureds personal property. 

What does homeowners insurance cover?

Your homeowners insurance policy will cover multiple risks and covered perils. It’s important to know which ones so you know what’s covered. Below are a few common questions regarding what may or may not be covered under your homeowners insurance policy;

Will my homeowners insurance policy cover mold?

Typically mold damage is not covered under a standard homeowners insurance policy. There are some homeowners insurance companies that may make an acceptation but they usually come with some sort of limitations. If the damage is caused by what seems to be poor maintenance, there is a very good chance the homeowners insurance company will not cover the damage. 

Will my homeowners insurance policy cover roof leaks?

A standard homeowners insurance policy usually will cover roof leaks, as long as they are caused by a covered peril. For example if the leak was the result of hail or a storm. Please keep in mind if the leak came about due to poor maintenance or neglect there is a very good chance your homeowners insurance company will not cover the damage. 

Will my homeowners insurance policy cover water damage?

Homeowners insurance will typically cover water damage if the cause was an unexpected burst pipe or washing machine failure. As mentioned above, the damage can not be due to poor maintenance or neglect. If the water damage is caused by heavy rain or flooding, there is a good chance it will not be covered under your standard homeowners insurance policy. If flooding is a risk you believe you need protection from you will need to purchase a separate flood insurance policy.

Will my homeowners insurance policy cover termite damage?

For the most part, termite damage is considered preventable, so there is a very good chance it will be considered poor maintenance or neglect. Although, there are circumstances that the homeowners insurance company may cover the damage. For example if termites chew through wiring which causes a fire, the homeowners insurance company may cover you. 

Will my homeowners insurance policy cover theft?

The majority of homeowners insurance policies will cover theft. Please keep in mind the amount of coverage is usually capped. The really valuable items may be excluded from your policy. Items such as art, jewelry and collectibles may need additional coverage if you plan on being fully covered. 

Will my homeowners insurance policy cover plumbing issues?

If you have a burst pipe or failed water heater more than likely your standard homeowners insurance policy will cover the damages. If the issue is due to poor maintenance you will not be covered. If the damage is caused by a slow leak and you notice it but do not repair it, you probably will not be covered. If you see an issue that needs to be fixed, it’s always best to fix the problem right away. 

Will my homeowners insurance policy cover fire?

Most standard homeowners insurance policies will cover you for fire and smoke damage. This coverage typically covers teardown, cleanup, and rebuilding costs for the main structure of the home and detached structures. This can also extend to furniture and personal belongings in the home. 

If you would like a free homeowners insurance quote, please give us a call at 1-209-339-1130