What Does Your Homeowners Insurance Plan Cover?

No one likes having to worry about unexpected events. However, when your home sustains damage, out-of-pocket expenses can quickly get out of hand. Thankfully, there are a number of homeowners insurance plans available that can help lessen your financial burden by covering all or some of the expenses associated with property repair or replacement and even additional living expenses in case you need to relocate temporarily.

What Is Homeowners Insurance?

Homeowners insurance is a contract between you and your insurance company. It is a form of property insurance for your home. Homeowners insurance typically covers the house itself and its contents separately from any other structures on the property, such as a swimming pool. An important feature of homeowners insurance is that it covers personal liability if the policyholder or one of their family members causes an accident that leads to injury or property damage.

Are You Legally Required to Have Homeowners Insurance?

You’ll need to have homeowners insurance if you have a mortgage on your home, but even if you don’t have a mortgage, it’s still a good idea to have the coverage. Homeowners insurance gives you financial protection in case something bad happens to your property, or someone is hurt on your property.

What Do Homeowners Insurance Plans Cover?

Standard home insurance plans will include the following six types of coverage:


This covers damage to the property and attached structures, like the porch. You should opt for an amount that is enough to allow you to rebuild your home.

Other Structures

This covers independent structures on your property, like the shed or a fence.

Personal Property

This part of your policy pays to replace or repair belongings that are damaged or stolen during a covered event.

Loss of Use

If your home is damaged or destroyed and you need alternate accommodation, your policy will help pay for it.

Personal Liability

If a third party is accidentally injured on your property or if your dog bites someone on your property, your home insurance plan will offer you coverage against legal issues.

Medical Payments

This part of your policy pays to treat individuals who have accidents on your property, irrespective of who is at fault.