What does Homeowner's Insurance cover?
Coverage for the Structure of your Home
Most homeowner's insurance policies provide coverage for the structure of your home against named perils, or certain catastrophes (such as fires, hurricanes, tornadoes, lightning, or other disasters specifically noted in your homeowners insurance policy). A notable coverage exclusion of Homeowner's Insurance policies are floods and earthquakes; insurance to protect against these types of losses almost always has to be purchased under a separate policy.
Coverage for your Personal Belongings
Your homeowner's insurance policy will provide basic coverage to protect the contents of your home. According to the Insurance Information Institute, “most companies provide coverage for 50% to 70% of the amount of insurance you have on the structure of your home.”
You can extend the amount of that coverage in the event you need additional protection by adding a Valuable Possessions Endorsement
to your Homeowner's policy.
Typically, your homeowner's policy will also include coverage that protects you and your family against liability risks, such as a visitor falling and getting injured on your premises.