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What Does Homeowners Insurance Really Cover?

th, June 30, 2025July 9, 2025

## Beyond the Walls: What Your Homeowners Insurance Actually Covers

Homeowners insurance: you pay for it, but do you really know what it covers? It’s more than just protection for your roof and walls! Understanding your policy is crucial to ensure you’re adequately protected against life’s unexpected events.

At its core, homeowners insurance provides financial protection against damage to your property and liability for injuries that occur on your land. Let’s break that down:

**Property Damage:** This is what most people think of. It covers damage to your house and other structures on your property (like a garage or shed) caused by covered perils. These perils typically include fire, windstorms, hail, vandalism, and even some types of water damage (think burst pipes, not flooding). The “coverage A” on your policy details the amount insured for the dwelling itself.

**Personal Property:** Don’t forget your stuff! Your furniture, clothing, electronics, and other belongings are also covered, usually up to a certain percentage of your dwelling coverage. This is coverage for the items *inside* your house. You can often purchase additional coverage to protect high-value items like jewelry or art.

**Liability Protection:** This is a big one! Liability coverage protects you if someone is injured on your property and sues you. It can cover medical bills, legal fees, and even settlements. Think of it as protection if your neighbor trips on your cracked sidewalk.

**Additional Living Expenses (ALE):** If a covered peril renders your home uninhabitable, ALE covers the cost of temporary housing, meals, and other expenses you incur while your home is being repaired.

**What’s NOT Covered?** Standard homeowners insurance typically *doesn’t* cover floods, earthquakes, or damage from pests like termites. You’ll need separate policies for these potential threats.

**The Takeaway:** Don’t wait for a disaster to understand your coverage. Take the time to review your policy, understand your deductibles, and ask your insurance agent any questions you may have. Knowing what’s covered (and what isn’t) will provide peace of mind and ensure you’re prepared for whatever life throws your way.

Business and Specialty Insurance

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