A homeowners insurance policy offers coverages that help pay for or repair your home and belongings if they are damaged due to a named peril. It may also cover liability for injuries to third parties or damage to their property.

Typical homeowners insurance policies only offer coverage for damage caused by certain perils, such as wind or hail. But, it’s important to understand that there are different types of policies that protect different things.

Levels of homeowners insurance coverage

HO-1: The most basic type of homeowners policy, an HO-1 only covers damage to your home at its actual cash value. It may or may not cover personal belongings. Many insurance carriers have stopped offering this type of policy.

HO-2: A step above HO-1, an HO-2 policy covers damage to your home at its replacement cost and covers personal property at its actual cash value.

HO-3: Also known as special form coverage, HO-3 is the most popular type of homeowners insurance. This policy covers your home at replacement cost and personal property at cash value, and it includes liability and medical payment coverage for individuals injured on your property.

HO-4: Intended for

renters

of apartments, homes, and townhomes, HO4 policies cover personal property at replacement cost. This typically includes damages caused by most natural disasters.

HO-5: Often referred to as comprehensive insurance, an HO-5 includes all of the benefits of an HO-3, and personal belongings are covered at replacement cost as well.

If you’re having trouble understanding what this all means, check out the handy chart below.

Policy type	What’s covered	Open perils?
HO-1	Main structure only	Named perils only
HO-2	Main structure, personal property, loss of use, liability, medical payments	Named perils only
HO-3	Main structure, personal property, loss of use, liability, medical payments	Main structure - open perils, personal property—listed perils only
HO-5	Main structure, personal property, loss of use, liability, medical payments	Yes

MORE: Does homeowners insurance cover a tree falling on your house?

What perils are covered by homeowners insurance?

Most homeowners policies cover the same 16 perils. Still, it’s important to read the fine print to understand exactly what your homeowners does and does not pay for.

These are the coverages you’ll likely find:

Fire and lightning

Smoke

Volcanic eruption

Explosion

Riot or civil commotion

Hail and windstorms

Damage caused by vehicles

Damage caused by aircraft

Vandalism

Theft or malicious mischief

Falling objects

Weight of snow, ice, or sleet

Water overflow or discharge from plumbing

Water heater cracking

Damage from electrical current

Frozen pipes

Take careful note of what you find. Because some policies (especially HO-1s) don’t cover all the listed perils, you must understand what yours doesn't cover so you can protect yourself in other ways.

Key Takeaway Pay careful attention to what is included in your homeowners policy. Common disasters, like earthquakes and floods, are often not covered.

Does home insurance cover natural disasters in Minnesota?

June, July, and August are usually very busy months for natural disasters in Minnesota—and tornadoes and floods are incredibly common. But Minnesota residents have to cope with harsh weather year-round:

Tornadoes

While the boundaries of Tornado Alley aren’t clearly defined, Minnesota has been included more and more in recent years. Twisters occur every month between March and November, and the state averages more than 45 tornadoes a year.

Damage from tornadoes can be excessive, including the destruction of homes, tossed vehicles, uprooted trees, and even death.

Most homeowners insurance will help repair or rebuild your home if the wind from a tornado damages it, but make sure your policy includes windstorm damage, just to be safe.

MORE:

Floods

Nicknamed “The Land of 10,000 Lakes,” Minnesota boasts over 11,842 lakes larger than 10 acres, as well as 69,200 miles of streams and rivers. It should come as no surprise that floods are a common occurrence.

In addition to widespread flooding, flash floods are often caused by heavy localized rain. In the last 20 years, Minnesota has experienced 11 historical mega-rain events, in which 6 inches of rain covered more than 1,000 miles.

Homeowners insurance policies do not cover floods, so Minnesota residents should purchase their own flood insurance. You can get a policy from a private broker, or through FEMA’s

National Flood Insurance Program

(NFIP).

MORE: How much does flood insurance cost?

Winter storms

Minnesota spends a large portion of the year covered with snow; the state averages 110 days annually with at least one inch of snow cover.

In addition, residents often experience freezing rain, sleet, ice, blizzards, and frigid temperatures during winter months.

The Lake Superior Highlands tend to get hit the hardest, but winter weather is harsh across the state. Not surprisingly, such extremes can cause serious damage to your home.

Except for HO-1 coverage, most homeowners policies should cover damage from winter storms in Minnesota.

MORE: What to do when your car is stuck in snow

Severe storms

Thunderstorms occur throughout the year in Minnesota. Though most are harmless, severe storms can bring heavy rains, lightning, strong wind, and hail.

The Twin Cities were hit by a powerful storm in June 2013, getting almost 8 inches of rain in just 24 hours. The precipitation caused flash floods and nearly $18 million in damage. As a result, a federal disaster was declared.

Typically, homeowners insurance would cover much of the storm damage to your home—though, in the case of a federal disaster, federal aid may pay for repairs to your residence.

MORE:Does my home insurance cover earthquake damage

Wildfires

In the past, Minnesota averaged about 1,500 wildfires a year. Recently, that number has nearly doubled.

Unfortunately, the uptick in wildfires can be almost entirely attributed to human activity, such as smoking, campfires, and the burning of debris.

What does that mean for your home? If your house falls in the path of a wildfire, your homeowners insurance should cover damage, no matter what type of policy you have.

Key Takeaway: Homeowners insurance should cover most of the natural disasters common in Minnesota. However, not all policies are the same. Make sure yours offers all the coverages you need before it’s too late.

How to file a home insurance claim

Filing an insurance claim is likely the last thing you want to deal with after a natural disaster has damaged your home. But don’t worry: the process is straightforward. Here’s what you’ll need to do:

Take photographs and make a list of damaged possessions

Call your insurance company and let them know you want to make a claim. An adjuster will review your case

Figure out how much you paid for damaged items. It helps if you have receipts

Complete the claim paperwork provided by your insurer

Go over the damages with your adjuster. Take your time and make sure you don’t miss anything

Get a variety of estimates to make sure you get a fair settlement

Collect your check and get started on repairs

Claims go much more smoothly when homeowners are familiar with the terms of their insurance policy before disaster hits. Just one more reason you should check out that fine print!

MORE: How to prepare your home for natural disasters

How to save money on homeowners and car insurance

No matter if you’re a first-time homeowner or you’ve been in the same house for 15 years—everyone wants to save on homeowners and

car insurance

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