What Does Homeowners Insurance Actually Cover?

Homeowners insurance is essential—but many homeowners don’t actually know what their policy protects. When disaster strikes, understanding your coverage can make all the difference between peace of mind and financial stress. In this guide, we’ll break down the core components of a standard policy and highlight what’s commonly excluded.

1. Dwelling Coverage
This is the foundation of your policy. Dwelling coverage pays to repair or rebuild your home if it’s damaged by covered perils such as fire, windstorms, hail, vandalism, or lightning. It includes the physical structure—walls, roof, floors, built-in appliances, and more.

• Example: If a fire destroys part of your kitchen, this coverage pays for repairs or reconstruction.

2. Other Structures
This section covers buildings on your property that are not attached to your main home—like sheds, detached garages, fences, or gazebos. Most policies automatically include 10% of your dwelling coverage for these structures.

3. Personal Property
Your belongings are also protected—this includes furniture, clothing, electronics, tools, and more. If your possessions are stolen or destroyed by a covered peril, personal property coverage helps pay for replacements. It typically applies both on and off your property (e.g., if your laptop is stolen while traveling).

• Tip: Consider a home inventory list to help in case of a claim.

4. Loss of Use (Additional Living Expenses)
If your home becomes uninhabitable due to a covered claim, your policy can help cover temporary living expenses like hotel stays, meals, and storage.

5. Liability Protection
This covers injuries or property damage you accidentally cause to others—either on your property or elsewhere. If someone slips on your icy walkway and sues you, your policy helps cover legal costs and settlements.

6. Medical Payments to Others
This covers minor injuries that occur on your property—without requiring a lawsuit. For instance, if a guest trips on your steps and needs stitches, this coverage kicks in, usually up to $5,000.

What’s NOT Covered?
Most standard policies do not cover:

• Flood damage (you’ll need separate flood insurance)

• Earthquakes (requires an add-on or separate policy)

• Wear-and-tear or maintenance issues

• Pests, mold, and certain types of water damage

Conclusion / CTA
Every home is different—and so is every insurance policy. Want to make sure your policy fits your needs? Contact Beyond Your Insurance today for a free review.