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?

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Shannon Martin
Answered on Mar 12, 2021
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?.
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