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Homeowners insurance provides you with financial coverage to help repair loss of or damage to your home or belongings in the event of a disaster or accident involving your home. Most common perils such as fire, windstorm, hail, and sudden and accidental water damage is typically covered by a homeowner’s insurance policy. However, all polices have exclusions. Some of those exclusions such as flood and earthquake can be covered by purchasing additional insurance.

• Dwelling Coverage: Pays for damage to the home (foundation, walls, and roof) resulting from a covered peril.

• Other Structures: Pays for damage to structures that are separate from your home like a detached garage, tool shed or fence resulting from a covered peril.  

• Personal Property: Provides coverage for your personal belongings if they are stolen or damaged by a covered peril. Policies include specific maximum limits for certain items such as jewelry, watches, or furs so it’s good to discuss those limits with your agent.

• Loss of Use: Pays some of your additional living expenses while your home is being repaired in the event of a loss resulting from a covered peril.

• Personal Liability: Pays your financial loss if you are legally responsible for someone else’s injury or for damage to their property. Higher limits are often available by purchasing a personal umbrella liability policy.

• Medical Payments: Pays medical bills when someone is hurt on your property.

Most common perils are covered by a homeowner’s insurance policy. However, all polices have exclusions. Some of those exclusions can be covered by purchasing additional insurance.

Earthquakes

A standard homeowners policy does not cover damage from the earthquake. The coverage is often available as an endorsement or by purchasing a separate policy.

Floods

Homeowner’s insurance doesn’t cover floods, so you’ll need to purchase a separate policy either through the National Flood Insurance Program (NFIP) or a private insurer. Private flood insurance offers higher limits and more coverages that a standard NFIP policy.

Maintenance Issues

Homeowners insurance is meant to cover losses resulting from sudden and unexpected events. Normal wear and tear and other general maintenance is not covered. You may want to consider a home warranty to cover repairs and normal wear and tear.