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What Does a Standard Homeowners’ Insurance Policy Typically Cover?

Woman stands in a brightly lit room in her home using a cell phone

When you have a home, it’s critical you buy enough homeowners’ insurance coverage to protect your most valuable asset in the event of a disaster, theft, or an accident.

Here’s what most standard homeowners’ insurance policies typically cover:

The Four Essential Types of Coverage

Most standard homeowners’ insurance policies provide four essential types of coverage, including:

  • Structural
  • Personal belongings
  • Liability
  • Additional living expenses

Structural Coverage

This coverage will pay for expenses related to repairing or rebuilding your home if it is damaged or destroyed as a result of:

  • Fire
  • Hurricane
  • Hail
  • Lightning
  • Other disasters listed in your policy

Most plans also provide coverage for detached structures, such as:

  • Garage
  • Toolshed
  • Gazebo

Most standard policies do not provide coverage for damages caused by a:

  • Flood
  • Earthquake
  • Routine wear and tear

It’s wise to purchase enough coverage to rebuild your home.

Coverage for Your Personal Belongings

If you lose personal property as a result of theft or covered natural disasters, it is typically covered by a standard policy. Typically, this coverage will provide compensation for 50-75% of the insurance you have on your home’s structure.

Your personal belongings should be covered by the policy even if you store them off the property. The policy may also cover up to $500 for unauthorized use of your credit cards.

In addition, you may be able to receive coverage for trees, plants, and shrubs—typically for about $500 per item.

Liability Coverage

This coverage provides you with protection against lawsuits for bodily injury or property damage that you or your family members inflict on others. It also covers damage that your pets cause.

Most liability limits begin at around $100,000, but it may be wise to purchase additional coverage according to your circumstances. Speak with an insurance professional to discuss your options.

Liability coverage also provides no-fault medical protection, so if someone gets hurt on your property, he or she just needs to submit their medical bills to your insurance company.

Additional Living Expenses (ALE)

If you’re unable to occupy your home due to the damage it sustained, your policy may pay for expenses related to living away from your home. It often covers the following while your home is being rebuilt:

  • Hotel costs
  • Restaurant meals
  • Other costs beyond your typical living expenses

This type of coverage does have limits, and some policies even include a time limit. Keep in mind that these limits are separate from the coverage available to rebuild or repair your home.

Additionally, if you rent out a portion of your home, ALE provides coverage for the rent payments you would’ve collected from your tenant if your home wasn’t destroyed.

If you need help with your homeowners’ insurance claim, contact the skilled attorneys at Berthold Law Firm, PLLC with the details of your case by calling (304) 605-2040 or by filling out our online contact form.

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