Published: June 2025
Homeowners insurance is much more powerful than you think. Standard policies are not well known to homeowners until they need to file a claim.
What parts of your home are covered under the standard policy and what are some examples to illustrate? Let’s go through each of them and find out more about them.
🏠What Is Covered Under Standard Homeowners Insurance?
Typically, most policies include The four protection types:
1. Dwelling Coverage
In the event of a covered peril, this will pay for the construction or reconstruction of your house.
âś… Covered Events:
- Fire
- Windstorms
- Hail
- Lightning
- Explosions
- Vandalism
- Damage from a vehicle or aircraft
Real Example:
A tree falls on your roof during a storm, causing $15,000 in damage. Dwelling coverage pays for repairs.
2. Personal Property Coverage
It insures your household belongings and furnishings – for example, sofas, televisions, and clothing.
âś… Covered Events:
- Theft
- Fire
- Some types of water damage
- Vandalism
Real Example:
– A burglary costs the laptop, TV set, and a piece of jewelry, which valued $5,000, all of which your insurance covers as a loss (after the
3. Liability Protection
This is the type of insurance that covers you for your own mistakes – an injury caused to a visitor at your house or you inadvertently inflicted damage on the private property of other people.
âś… Covered Scenarios:
- Someone delivering a product slips and falls on your snow-covered driveway
- The person whom your dog bites is the neighbor. The cost for healthcare is $3,200. Your coverage will pay the medical bill.
- Either your child breaks a neighbor’s window with a baseball
Real Example: What if a family lives in a house that is hit by a UFO, and they have been ejected into the atmosphere?
4. Additional Living Expenses (ALE)
Called “loss of use” as well, ALE can assist in the payment of the rent for a temporary abode, and the like, that you may incur if your home is no longer inhabitable because of a disaster that is guaranteed in the policy.
Real Example: Your house is damaged due to fire in the kitchen, which means you have to stay in a hotel for 14 days. ALE pays for your hotel and meals.
🚫 What’s Not Typically Covered?
There are no policies that cover everything. Some of the most common exclusions include the following:
- Floods (You need separate flood insurance)
- Earthquakes (Also requires separate coverage)
- Wear and tear or lack of maintenance
- Mold (unless caused by a covered event)
- Termite or pest damage
Pro Tip: Always read the policy fine print or ask your agent for clarification.
đź’ˇ Optional Add-Ons (Endorsements)
There is a lot of potential to develop the scope of your coverage by means of endorsements. Some of them include:
- Sewage Overflow coverage
- Protection for ultra-valuable items such as jewelry, fine arts, etc.
- Home operating business security
- Identity theft insurance
Common Misconceptions
| Myth | Reality |
|---|---|
| “Homeowners insurance covers everything.” | Only specific events are covered. Floods and quakes usually aren’t. |
| “I’ll get full replacement value for everything.” | Many items are covered at actual cash value unless you opt for replacement cost. |
| “My home’s market value is the same as its insured value.” | Insurance covers rebuilding costs, not real estate value. |