Understanding Homeowners Insurance: Coverage, Costs, and Claims
Homeowners insurance is essential protection for what might be your biggest investment. But understanding exactly what your policy covers—and what it doesn't—can be confusing.
What Does Homeowners Insurance Typically Cover?
Dwelling Coverage
- The structure of your home
- Attached structures (like garages)
- Built-in appliances
- Plumbing, electrical, and HVAC systems
Other Structures Coverage
- Detached garages
- Sheds
- Fences
- Driveways
Personal Property Coverage
- Furniture
- Clothing
- Electronics
- Appliances
Liability Protection
- Legal costs if someone is injured on your property
- Damage you or your family members cause to others
Additional Living Expenses
- Hotel costs if your home becomes uninhabitable
- Temporary rental expenses
- Additional food costs
Common Exclusions
Most standard policies DON'T cover:
- Floods - Requires separate flood insurance
- Earthquakes - Requires separate earthquake insurance
- Normal wear and tear - Regular maintenance is your responsibility
- Pest infestations - Termites, rodents, etc.
- High-value items - Jewelry, art, collectibles may need additional coverage
How to Save on Homeowners Insurance
- Bundle policies with the same insurer
- Increase your deductible (but make sure you can afford it)
- Install security systems and smoke detectors
- Improve your credit score
- Ask about discounts for new roofs, loyalty, claim-free history, etc.
Filing a Claim: Best Practices
- Document everything - Take photos and videos of damage
- Make temporary repairs to prevent further damage
- Keep receipts for everything related to the damage
- Don't throw damaged items away until the adjuster has seen them
- Be present for the adjuster's inspection
Reviewing Your Policy
Review your policy annually, and especially after:
- Home renovations
- Major purchases
- Adding safety features
- Changes in home values in your area
The best insurance policy is one that provides adequate coverage for your specific needs without breaking the bank. Take time to understand your coverage, shop around for quotes, and update your policy as your life changes.