Homeowners Insurance Coverage 101: What Is and Isn’t Covered

Did you know that in 2017, 6% of insured homes filed a homeowners insurance claim? If you own a home or are a new homeowner you are familiar with having homeowners insurance but you might be confused with all the terminology. Insurance policies are sometimes complicated to understand. This is why we are going to go into more details on homeowners insurance coverage.

Keep reading to learn about what is and isn’t covered to make sure you are not left with a surprise bill because you are not covered for something you thought you were covered for. 

Homeowners Insurance Coverage 101

Most people are pretty familiar with what their health and vehicle insurance cover but when it comes to their homeowners insurance coverage – they are left knowing little to nothing and just assuming that it covers everything. That is until something happens and they realize they are not covered. 

The following list is a typical list of what is covered – keep in mind that this is a general list and your policy may not cover some of these perils:

  • Vandalism
  • Fire Damage
  • Smoke Damage
  • Water Damage (not from flooding but internal sources)
  • Wind or Hail Damage
  • Gas Explosions
  • Aircraft Damage
  • Vehicle Damage
  • Personal Property Theft
  • Snow or Ice Damage on Roof
  • Civil Disturbance Damage

This list is not all-inclusive and depending on your policy you might or might not be covered. Make sure to check your roof damage and insurance coverage if you don’t live in an area where you have rough winters and won’t have to deal with snow or ice.

If you live in a flood or earthquake-prone area make sure that you have coverage in case one of these natural disasters occur. Most policies do not cover floods and earthquakes, which means you will have to take out a separate policy to make sure you are covered in case of an event.

Maximum Coverage Limits

This is something else you will want to double-check with your policy. Just because you have the coverage doesn’t mean it is unlimited. There might be a cap on how much they will cover. For example, if your jewelry, cash, or art collection was stolen, they might not cover the entire worth amount. 

If you have valuable items make sure you are aware of how much you would be covered for and if there is a maximum cap. 


Some homeowners insurance policies will provide liability coverage if you or someone else is injured on your property. For example, if your dog bites someone and they are injured, your policy might cover the person’s medical bills. Again make sure to ask if your policy includes liability coverage in that event that there is an injury while on your property.

Don’t Assume You Are Covered for Everything

The last thing you want is to find out that your home has damages that your homeowners insurance coverage does not cover. This rude awakening can quickly disrupt your lifestyle and your finances. Now that you are more aware of what is typically covered it’s time to do your part and contact your current insurance provider and ask specific questions. 

If you live in an area where you have a high risk of flooding, fires, tornadoes, etc make sure you are covered. 

Did you find this article helpful? Please check back often to stay in the know.