A basic homeowners policy covers specifically named risks—or perils—such as lightning, theft, fire, smoke, wind, and explosion. With a basic policy, any risk that is not specifically mentioned in the policy is not covered. You can, if you choose, purchase special policies that cover the house for all perils except those specifically excluded by the policy (e.g., pet damage).
Homeowners policies vary by company more than by state. The chart below illustrates typical coverage under a standard homeowners policy.
Exclusions and Additional Coverage
Read your homeowners policy carefully to find out what is excluded—not covered—by your policy. In addition to excluding specific perils, basic homeowners policies may also exclude:
-
Property and liability coverage for tenants, roomers, or boarders. Tenants can purchase renters insurance to cover their personal property and personal liability. (See "Renting Property")
-
Business liability for damages resulting from home business activities and professional services, as well as injuries or property damage as a result of business activities. Talk to your insurance agent about separate business-related coverage. You can expand your basic homeowners insurance policy by purchasing coverage for:
-
Reasonable repairs to prevent a further loss, such as repairing a patio that was damaged in a storm to prevent further erosion.
-
Lightning damage to trees, plants, shrubs and lawns.
-
Fire department service charges.
-
Earthquakes.
-
Floods (must be purchased from the federal National Flood Insurance Program).
To purchase flood insurance contact the National Flood Insurance Program at 888-379-9531 or go to www.floodsmart.gov. You can also speak to your insurance agent for guidance. It may be that the holder of your mortgage requires you to have flood insurance.
|
| COVERAGE |
DESCRIPTION/
EXPLANATION |
POSSIBLE EXCLUSIONS |
| Dwelling |
- Residence, attached/built-in garage
|
Excluded perils. Most frequently excluded are:
- Earthquake, except by special endorsement
- Floods
- Pet Damage
- Damage by birds, rodents, and insects
- Pollution damage
- Water damage resulting from flood or sewer backup, except sewer back up coverage by a special endorsement
- Deliberate damage you do to your own or someone else's property
- Normal wear and tear
- War
|
|
Other
Structures
|
- Includes structures you own that are not attached to the house, such as storage sheds, fences and barns.
- Motor vehicles such as your lawn mower or motorized wheelchair are covered, but your automobile must be covered by a separate auto insurance policy.
|
| |
|
| Personal Property |
- Covers damage, theft or destruction of items such as televisions, stereos, furniture, etc.
|
- Generally excludes same perils as dwelling coverage, and some items are subject to special limits (e.g. jewelry)
|
|
| Additional Living Expenses |
- Covers the additional costs of living in case you have to move out of your home and live in a hotel or rental while it is being repaired for a covered loss.
|
|
|
| Basic Liability Insurance and Medical Payments to Others |
- Covers expenses in the event you are found to be legally responsible for damages or injuries to others, on or off your property.
|
- Damage done intentionally
- Business liability
|
|
