Homeowner's Insurance Overview
- Victoria
- Apr 22
- 3 min read
What It Covers, What It Doesn’t, and Why It Still Matters — Even if You Own Your Home Outright
Homeowners insurance is more than just a requirement for mortgages — it’s your financial backup plan when something unexpected happens to your home. Fires, storms, theft, water leaks… things happen. Homeowners insurance helps cover those costs so you don’t have to pay everything out of pocket.
Here’s what you need to know.
🧾 What Does Homeowners Insurance Cover?
A typical homeowners policy is made up of 6 standard parts (also called “coverages”). Here's what each one means:
🔨 Coverage A: Dwelling Coverage
Covers: Damage to the structure of your home (walls, roof, foundation).Examples:
Fire or smoke damage
Hail or windstorm damage
Tree falling on your roof
This is the core of your policy — make sure it's enough to rebuild your home, not just its market value.
🏠 Coverage B: Other Structures
Covers: Structures not attached to your home.
Examples:
Detached garage
Shed
Fence
Usually 10% of your dwelling coverage, but you can increase it if needed.
🛋️ Coverage C: Personal Property
Covers: Your belongings — furniture, clothing, appliances, electronics.
Examples:
Theft
Fire
Vandalism
📌 Tip: High-value items (like jewelry or collectibles) may need separate coverage or an add-on.
🚑 Coverage D: Loss of Use (Additional Living Expenses)
Covers: Extra costs if you can’t live in your home due to damage.
Examples:
Hotel stays
Temporary rental
Food expenses while displaced
Important for seniors who may need accessible lodging if displaced.
⚖️ Coverage E: Personal Liability
Covers: If someone is injured on your property and sues you.
Examples:
Someone slips on your icy walkway
A tree from your yard falls on a neighbor’s home
🏥 Coverage F: Medical Payments to Others
Covers: Small medical bills for injuries to guests, without lawsuits.
Examples:
A neighbor trips on your steps
Your dog scratches a visitor
Usually capped at $1,000–$5,000.
🛑 What’s Not Usually Covered?
Homeowners insurance doesn’t cover everything. Common exclusions include:
Floods (you need a separate flood insurance policy)
Earthquakes (available as an add-on)
Wear and tear / maintenance issues
Pests (termites, mice, etc.)
Mold (unless caused by a covered event like a burst pipe)
📌 Tip: Always ask for a list of exclusions — some companies offer add-ons for things like sewer backup or equipment breakdown.
🧠 Common Questions
“Do I still need insurance if my home is paid off?”
Yes! If something major happens, like a fire or storm damage, you’d otherwise have to pay to rebuild out of pocket. Even just losing power for a few days and needing a hotel adds up quickly.
“Can I lower my premium?”
Yes! Ask about:
Senior discounts or loyalty discounts
Higher deductibles (means lower monthly premium)
Bundling with auto or umbrella insurance
Installing smoke alarms or security systems
“Should I update my policy over time?”
Definitely. If you’ve added a porch, renovated a kitchen, or bought new furniture, your coverage should reflect your home’s new value.
🧾 Quick Homeowners Insurance Checklist
✅ Do I have enough coverage to rebuild my home?
✅ Do I have replacement value or actual cash value coverage for belongings?
✅ Do I have a copy of my policy on paper or digitally?
✅ Have I asked about discounts?
✅ Do I have flood or earthquake coverage if needed?
🤝 Need Help Understanding Your Policy?
Whether you’re unsure what your homeowners insurance covers, or you’re looking to lower your premiums without losing protection, I can help you review your policy and explain the fine print.
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