What does homeowners insurance cover?

My partner and I are shopping for our first home. Neither of us is well-versed in home insurance. What kind of coverage does it offer?

When most people think of homeowners insurance, they usually think of protection for just the home’s structure itself, but it covers so much more than that! It covers your home, your personal items that fill your home, things built on your property, and your family’s financial future in the event of a lawsuit. A homeowners policy is generally made up of six different categories that are labeled A to F, as follows:
  • Coverage A: Damage to the dwelling (the house and anything permanently attached like walls, cabinets, fixtures, etc.)
  • Coverage B: Other structures (things like detached garages, sheds, pools, etc.)
  • Coverage C: Personal property (your stuff, including clothes, TV, furniture, etc.)
  • Coverage D: Additional living expense (pays for hotel bills, food, laundry service, etc., while your home isn’t livable due to a covered loss)
  • Coverage E: Personal liability (covers claims in a lawsuit if someone gets hurt on your property)
  • Coverage F: Medical payments to others (covers small no-fault expenses if someone gets hurt on your property)
If the unthinkable happens and you lose your home to a covered loss, imagine having to buy everything to start over. From simple things like your clothes and a toothbrush to the more important items like jewelry and electronics — let alone the actual repairs to the home — it can be very expensive and overwhelming to think about. It is crucial to work closely with an agent who understands your property and financial needs so that you and your family are adequately protected.
To learn more about homeowners insurance, check out this article: What Does Home Insurance Coverage Include and Exclude?.
Shannon Martin
Answered on Mar 12, 2021
Shannon is an expert in personal lines liability insurance with 13 + years of insurance industry experience. She also served as a special insurance liaison to AARP members for 6 of those years. She is a graduate of UL Lafayette and currently resides in NY with her family. Shannon is also an amateur juggler, ukulele player, and is a time travel paradox theory enthusiast.

Did this answer help you?

Ask us a question by email and we will respond within a few days.

Have a different question?

You can meet us at our office and discuss the details of your question.

Read advice from car experts at Jerry

Easiest way to compare and buy car insurance

No long forms
No spam or unwanted phone calls
Quotes from top insurance companies
Find insurance savings — it's 100% free