Before you purchase a policy, it’s important to understand what homeowners insurance covers and what it does not. Homeowners insurance is actually several types of coverage, some of which cover your home and some your personal belongings. Some coverage applies to damage you do at another person’s property or injuries someone suffers at your home.

And, when it comes to natural disasters you should understand what’s covered and what isn’t. For instance, generally, earthquakes and floods are not covered by home insurance. This type of coverage requires purchase of a separate policy.

What is Covered

To get started, here is what the Insurance Information Institute says are some of the most common perils that, typically, homeowners insurance covers.

1. Fire and lightning
2. Windstorm and hail
3. Explosion
4. Riot or civil commotion
5. Aircraft
6. Vehicles
7. Smoke
8. Vandalism or malicious mischief
9. Theft
10. Volcanic eruption
11. Falling objects
12. Weight of ice, snow, or sleet
13. Accidental discharge or overflow of water or stream
14. Sudden and accidental tearing apart, cracking, burning or bulging
15. Freezing
16. Sudden and accidental damage from artificially generated electrical current

Protections

Dwelling Protection – This is the coverage that protects the structure of the insured home from certain risks. It also protects garages and decks or other structures that are attached to the home.

Other Structures Protection – For structures located on the same property but are separate from the home, such as a tool shed or a fence, you must have other structures protection.

Personal Property Protection – To protect your personal belongings, you will need personal property protection. This will protect furniture, electronics, and other items inside the home from a covered risk. It may help with the cost of repair or replacement. There are many optional coverages that can help protect high-value items, such as jewelry or antiques that might have value above the coverage limits.

Liability Protection – This type of protection is intended to provide coverage when a visitor is injured while on your property. You can also purchase medical payments protection that can help with small injuries to visitors on your property. Some homeowners also choose to add a personal umbrella policy which can increase liability coverage limits.

Loss of Use – Another helpful coverage is Loss of Use protection, which may provide reimbursement for extra costs if you must leave your home because a covered incident.

Homeowners Insurance Deductibles and Coverage Limits

Each type of homeowners insurance coverage is subject to its own limit. A limit is the maximum amount the insurance company will pay out towards a loss. Coverage limits are adjustable to your needs, and of course the cost is adjusted. Higher limits mean higher premiums.

One way to combat higher premiums is by choosing a higher deductible. A deductible is the amount you must pay out-of-pocket before your insurance company will begin to reimburse you for losses. The higher the deductible you are responsible for, the lower your premiums will be.

To better understand what homeowner’s insurance covers, you can get started with quotes. The best way to get the policy that fits your needs, and your budget, is to shop around. InsuranceWay can get you started. Fill out our simple form and find the policy that’s right for you!