One of the most common questions I hear while working as an Insurance Agent is, “What is my home insured against?” It’s quite a long list of perils that that your homeowners insurance protects your home against. Most policies have similar perils of what they insure a home against but each insurance carrier may vary slightly. For the most part homeowners policies insure your home against:
Fire
Lightning
Windstorm & Hail: Including hurricanes and tornadoes.
Accidental Discharge of Water: Your policy will likely cover damage to the home itself but will not cover the repair costs of fixing the plumbing that caused the damage.
Explosion: This would likely occur from a gas leak in the home.
Freezing of plumbing: The damage to the home itself would be covered and like Accidental Discharge of Water the plumbing repairs would not be covered.
Vandalism:
Theft: If your home is broken into and your property is stolen and/or damaged.
Smoke: Smoke damage from a fire is likely covered.
Falling Objects: This likely entails having a neighbor’s tree or the branches falling and damaging your home.
Riot or Civil Commotion: If a riot breaks out in your home town your home will be covered for damage.
Aircraft: Though rare, your policy may cover your home if it is struck by an airplane or helicopter.
Vehicles: It is not uncommon for cars to strike homes. During my time as an Auto Claims Adjuster these accidents occurred more often than you would imagine.
Volcanic Eruption: Relevant if you live in an area by volcanoes.
Weight of Ice or Snow: Usually associated with the weight of snow or ice damaging one’s roof.
This list is not all encompassing. As I mentioned before policies and coverage vary by each insurance carrier but I can say that earthquakes and floods are not covered under your homeowners policy. Depending on where you live, you may qualify for a separate earthquake and/or flood policy. Depending on your mortgage company you can be required to carry the coverage.
Also wear and tear on your appliances is not covered by your homeowners policy. You will need a warranty for the item or a home warranty to cover all the appliances. Home Warranties are available from various companies.
One thing to consider with your homeowners policy and your dwelling coverage is that the coverage limit is based on what it costs to rebuild the home. It isn’t based on what you paid for the home, the market value or the amount of your mortgage. If your home is damaged by one of the aforementioned covered perils most insurance companies will rebuild or repair your home back to how it was before the claim occurred. They will not issue you a check to buy another home. Insurance is intended to make you whole again and they do this by repairing your home back to its former glory.