Homeowners insurance protects your home and finances if a covered event damages your property or someone is injured there. A standard policy is built from several coverage parts.
What homeowners insurance typically covers:
- Dwelling — the structure of your home itself.
- Other structures — detached structures like a garage, shed, or fence.
- Personal property — your belongings, such as furniture, electronics, and clothing.
- Liability — legal and medical costs if someone is injured on your property or you damage someone else's property.
- Loss of use — additional living expenses if a covered event makes your home temporarily uninhabitable.
Common covered events include fire, windstorms, hail, theft, and vandalism — though exact covered perils depend on the policy.
What homeowners insurance usually does NOT cover:
- Flood damage — see does homeowners insurance cover flood damage.
- Earthquakes (often a separate policy or endorsement).
- Normal wear and tear, or damage from lack of maintenance.
Insurance vs. a protection plan: homeowners insurance handles sudden, unexpected events; a service plan for everyday system and appliance breakdowns is different — see how home protection differs from homeowners insurance.