What Does Homeowners Insurance Cover And Not Cover

What Does Homeowners Insurance Cover And Not Cover

For many in the United States, homeowners insurance is simply a necessary part of buying a home you plan to finance. Most mortgage lenders require homeowners insurance before giving out a loan, and this is to ensure their investment is protected in the event of a catastrophe. If a person is still actively paying on a home, and that home is destroyed by a fire or a fallen tree, it’s the homeowner's insurance policy that ensures an individual will be able to retain this home and continue paying it off. In a best-case scenario, a homeowner's insurance policy won’t need to be used, but you certainly don’t want to need it and not have it there.


Because homeowners insurance is often such a simple “part” of buying a home, many homeowners get to know very little about their policy. For instance, many don’t know the simple details of what their policy may or may not cover. Knowing what your homeowner's insurance policy covers lets you know when you can rely on it, what policy is best for you, and what damages might be covered if you find yourself in need.


The Standard Coverages Of Homeowners Insurance


While all homeowner's insurance policies will differ a bit, there are some standard coverages that remain mostly the same across the board. A basic homeowners insurance policy will cover:


  • Fire – If your home is ravaged by fire, your homeowner's insurance policy will typically step in to take care of the damages. This rings true whether the fire is caused by arson, a gas leak, or a candle left unattended.


  • Storm damage – Whether it’s a windstorm, a tornado, hail, lightning, or a hurricane, storm damage is typically covered by a standard homeowner's insurance policy.


  • Riot or civil commotion – If a riot or some type of civil commotion takes your home as a casualty, a typical homeowner's insurance policy will cover the damages.


  • Vandalism – Vandalism, and burglary are more common than many homeowners realize or would like to admit. Your homeowner's insurance policy will step in if your home is vandalized or burglarized in most cases.


  • Explosion and volcanic eruption – While these aren’t coverages that are needed frequently, they are still covered by standard homeowners' insurance policies.


Knowing what your homeowner's insurance policy does cover is important, and so is knowing what it doesn’t cover. Some things that aren’t typically covered in your standard homeowner's insurance policy are:


  • Earthquakes – Earthquakes are typically not covered under standard policies and will require their own coverage.


  • Flood – Flood insurance is a separate coverage typically not covered under your standard homeowner's insurance policy.


  • Intentional loss – Homeowner's insurance coverage will not cover intentional losses, and if a claim is discovered to be an intentional loss, this could be considered insurance fraud.



Get To Know Your Policy


It’s best to get to know your policy, something that many homeowners fail to do. If you’re looking to get to know your policy, or if you’d like to find the policy your home needs, contact us at Panorama today.

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